The Pros And Cons Of Globalization

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1) Globalization is the process of integration between companies in different parts of the world for the purpose of carrying out investments and trade internationally. Globalization is facilitated by information technology.
Regionalization entails the formation of decentralized regions. Unlike in globalization, the world is less connected with much focus to specific regions.
Localization can be defined as the process of adapting a certain product or service and modifying it to the taste of a certain target market. This may entail changing it to suit the customers in terms of their cultural or linguistic standards.
2) The two main reactive responses as to why firms get involved in globalization include; the need to engage in international competition, which is aimed at increasing the company’s operations and maximizing its profits. A firm may also face difficulties resulting from harsh restrictions by the local government, thereby forcing it to relocate its operations in other countries that have less-harsh restrictions.
Two major proactive reasons include; the need to seek economies of scale, and the need to seek more expansion opportunities in case the home market becomes congested.
3) Investment through joint ventures is a market entry strategy used by the strategic audit firms to enter the global markets. This entails the coming together of a domestic and a foreign company to completely form a new company. Its main advantage is the low costs involved since all related

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