The competition between businesses will ensure better quality of their goods and service they provide. Competition is well known for providing great productivity which leaders to a growth in the economy. Not only can competition improve the quality of work, it can also improve innovation. Innovation is an important quality to have in a company because it aids in keeping products and services fresh. “Economic Influence on Marketing” claims, “To keep current, your business has to adapt to changes in the industry and must always keep its eye out for innovative, cutting-edge technology and product improvements” (Bradley).
The next positive aspect which is taken into consideration is that the developing countries now can receive sources of capital, new technologies from developed countries, which is very essential for the growth of a country. And in return, the developing countries let the developed countries’ companies do business in their countries. For instance, you can see McDonald’s store in almost every countries. In general, globalization has benefited both developing and developed nations, and became one of the most important factors that affect a country’s
CSR plays an important role in world of business as it implies to do well by doing good. A large number of multinational units have set global standards, in which same technology is used throughout the world. This helps to create a strategic advantage as well as also serves to elevate the technological expectations. The CSR initiatives not only help in creating awareness and education, but it also helps in ensuring the growth of middle class people. Some of the companies make use of it by expansion of their consumer base in rural as well as urban areas.
As the rapid growth rate of economic environment in current world market, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influencing each other during diplomatic business activities. The globalization also simulates innovation and creativity in the emerging countries; it encourages the spirits of entrepreneurship and drives the emergence of innovative business models. China as one of the fastest growing countries in efficiency-driven economy system, where economic growths are based upon manufacturing in domestic markets, outsourcing, and exporting products to foreign
Economic growth is driven by innovation, led by young entrepreneurial firms, where financing of these firms can be difficult because of moral hazard and asymmetric information. Venture capitalists are the specialists at solving these problems, connecting entrepreneurs who have ideas and technology with investors who have money. Ensuring funding for innovative firms has positive externalities on the economy, so it makes sense for governments to promote an active venture capital market. However, there is an argument for supporting the venture capital markets starting from standard macroeconomic theory: capital and labor should be available to produce output. How capital and labor are combined is central to how much output is produced.
Entrepreneurial education is considered central to the economic development of nations (Kabongo & Okpara, 2010). Entrepreneurship education has to increase entrepreneurial self-efficacy, self-employment, and risk-taking attitude of the entrepreneur (Cheng & Chan, 2009). Entrepreneurship education creates enormous business opportunities and trains people with innovative enterprise skills to grasp the opportunities for starting new entrepreneurial activities (Cheng & Chan, 2009). Entrepreneurship education is one way of addressing poverty reduction, as there is strong empirical evidence suggesting that economic growth over time is necessary for poverty reduction. Entrepreneurship boosts economic growth, enhances educational attainment and increases the rate of economic growth (Mitra & Abubakar, 2011).
One of the primary motivations to advertise itself as a destination for tourism is the likely economic boost in a developing country. The powerful economic forces provide employment, foreign exchange, income and tax revenue. One of the common economic impacts of tourism is the Multiplier Concept where good or service purchases from the tourist are gain by the Sterling Bay. The earning is then spent again by Sterling Bay to provide a better goods and services for better value. One of the advantages will be from the multiplier effects.
The company aimed also to benefiting from economies of scale. The cohesion between the structure of the company and the strategy applied is very crucial. The structure aligns the company with the strategy it wishes to implement, and along with the companies control systems and culture, will utilize the value-chain capabilities and competencies, and facilitate increased profitability, competitiveness and superior return on investment (Henderson, 1993). Procter and Gamble identified the rapid increase in globalization and changed their business strategy and the company’s structure in order to increase their exposure in many countries. This was to help it benefit from economies of scale and to remain competitive internationally.
All these things can lead to improvement of tourism and hence the economy of the country. And as we know economy and tourism drive each other and it’s important to think about the economical aspect.So, the main importance of tourism portals is publicity and promotion of unique events in the
Entrepreneurship has been described as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit” (www.businessdictionary.com). Entrepreneurship takes the economy and the society to the state of progress and prosperity. New businesses can create new jobs and therefore will increase the employment rate of the nation. This will also generate income to the entirety of the nation. People who pursue entrepreneurship can generate new ideas which will provide a diversity of offerings for the consumer (Ramos, 2014).