Globalization, “the tendency of investment funds and business to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets” (Investopedia, para1), has two sides; the good side and the bad. “1, premise”, a good side of globalization is the opportunities and efficiencies that open markets create. Business can communicate effectively and efficiently with customers and partners which allows them to better manage their distribution network. This allows local producers to sell products that they normally could only sell in their home country in global markets with the same ease. An example of this is Sony Corporation who is originally a Japanese company who now sells merchandise all over the world.
As an avid gamer who started playing on a PlayStation One I am thankful that globalization allowed this system to come to America. “1, conclusion”, therefore, globalization has created an open market. “2, premise”, a bad side of globalization is because of the high degree of incorporation of local markets, growth of competition, high degree of copies, price and profit swings, and business and product destruction bring on new risks and doubts. “2, conclusion”, because of this corporations that previously had been enjoying benefits of globalization, now face unsound and fickle demand on business opportunities and their products. This leaves them with little pricing power and constant pressure from competitors. Globalization has two sides, a good and a bad, which does offer many companies more opportunities. In the same token though it can also create many risks. One way or another though globalization is here and it has become a constant. Either companies learn to adapt and harness the profits or they fail.
The Term Paper on Globalization and International Business
Globalization and International Business The Concept of Globalization – putting everything into one village * The process of integration and convergence of economic, financial, cultural and political systems across the world. * Globalization – refers to the integration and interaction between different people and nations. * Globalization is the process of international integration arising from the ...
References
INVESTOPEDIA
Retrieved from http://www.investopedia.com/terms/g/globalization.asp
