The Impacts of Globalization on Businesses, Research Paper Example

Introduction

Globalization is the method of transforming the local phenomena in to global one. This is when other countries start connecting together entirely. It is also when people living around the world are linked with each other (Binder, Offermanns, 2014). When one part of the world are producing services and goods and they are obtainable almost in all parts of the world. Globalization has both negative and positive impacts on the business. Therefore, in this essay positive effects of globalization on businesses will be discussed (Maurer, Degain, 2012).

Opportunities in Globalization (Premises 01)

Globalization can generate new ideas, new opportunities and open the new markets that the entrepreneur don’t have in their home countries. It also creates great opportunities for the businesses who are in less industrialized countries to utilize larger and more markets around the world (Maurer, Degain, 2012). In previous times, East Asian economy shows the positive impact of globalization on growth in economy and it reveals that globalization decrease poverty in some circumstances. The glorious growth in East Asia  whose GDP increased per capital by eight fold and it raised many people out of poverty, was entirely based on globalization (Binder, Offermanns, 2014)..

Foreign trade (Premises 2):

Globalization has expanded foreign trade in all over the world. Through this trade people can get whatever they want wherever from any country (Maurer, Degain, 2012). World trade organization appeared as powerful international organization have the ability to influence government to follow rules, copyrights, policies taxes, tariffs and subsidies of international trade. 

Competition (Premises 3)

One of the noticeable positive effect of globalization on businesses is the products improved quality due to the globe competition. As customer is the king in providing profits in businesses so production has to improve quality of services and goods (Maurer, Degain, 2012). As domestic companies have fight from the foreign competitions, so they are urged to increase their customer satisfaction and standards level as to survive in market. Other than that when global brands penetrates in a new country, it arrives in progressing on some goodwill. This makes the competition in market and the situation gets survival of the fittest (Maurer, Degain, 2012).

Natural advantages (Premises 4): 

In globalization market gaining access around the world permits each country to purchase its own distinctive natural advantages (Maurer, Degain, 2012). Lets consider the example of Saudi Arabia, it would not matter a lot to Saudi Arabia that the country ruling on resources of vast oil if they didn’t have the ability to ship or to sell the oil all around the world (Binder, Offermanns, 2014). It is the globalization trade which allows the nations collect wealth from all over the globe.

Conclusion 01:

This will lead the business in accessing more capital flows, human capitals, technology, larger  export and cheaper imports. The globalization allow countries who are less industrialized in business to become segment of international production supply chains and networks that are main channel of trade (Maurer, Degain, 2012).

Conclusion 02:

Through international trade countries do businesses  where they export and import goods all over the globe. The countries who exports goods can get many advantages. The wide variety of nations who are dependent on trade these countries enjoy comparative advantage in foreign trade (Binder, Offermanns, 2014).

Conclusion 03:

International business face tough competition in the world. In this condition competition is in between unequal partners which are developing and developed countries (Binder, Offermanns, 2014). In this world of competition developed countries are more towards in favorable position as they produce higher ranking quality of goods and service at low prices (Maurer, Degain, 2012).

Conclusion 04:

The natural advantage allows countries in geographic region to manufacture the particular commodities or products in higher quality or lower cost than others. Without international trade, the natural advantages has not added much to the economy (Maurer, Degain, 2012).

References

Binder, M., & Offermanns, C. J. (2014). Globalization and International Business Cycle Dynamics.

Maurer, A., & Degain, C. (2012). Globalization and trade flows: what you see is not what you get!. Journal of International Commerce, Economics and Policy, 3(03).