Is Globalisation Good For Business?

Globalization has become one of the most important forces in the world today and it has come to have significant influence on business. It is good for business because it enables them to ensure that they have access to new markets, while allowing them to expand swiftly. There is no one purpose for globalization, but it is instead a force that is essentially connected to business. Globalization has developed because of the human urge to develop and to acquire those goods and services that they do not produce themselves. Therefore, businesses are well served because they are able to ensure that they provide the services and products that are in high demand in different parts of the world (Wirtz, Tuzovic, & Ehret, 2015). Globalization allows them to make sure that they are better able to ensure that there is the advancement of their interests because rather than relying solely on their local markets, they have a diversity of markets to choose from. They are also able to bring about the establishment of partnerships with other businesses across the world in such a way that they ensure that their production costs are significantly reduced while at the same time creating an environment where they can easily shift their operations to take advantage of such incentives as cheap labor (Søderberg, Krishna, & Bjørn, 2013). A consequence is that globalization, rather than being a hindrance for business, can be considered a boon because it ensures that there is stable growth while at the same time promoting the production of high quality goods because of competition.

One of the most significant aspects of globalization is that it is often promoted by businesses. Businesses actively work towards making globalization happen because it provides them with many opportunities. Among these opportunities is that globalization provides opportunities based on cheaper production costs and more consumers to sell to. In developed countries, globalization has an influence on all types of businesses, even small ones. These businesses are able to take advantage of outsourcing opportunities provided by globalization to ensure that they produce their goods cheaply (Gerbl, McIvor, Loane, & Humphreys, 2015). The make use of the cheap labor as well as the lower production costs that are provided in such countries as Brazil, Mexico, and China to ensure that they remain competitive, especially against their much larger rivals. These businesses have also been able to achieve a considerable amount of growth through rapid expansion and this is to such an extent that those companies with the greatest competitive edge, including small businesses, are able to attain growth at a faster rate if they operate in a globalized environment. The creation of an environment where it has become possible for even small businesses to thrive has been brought about by globalization and this has ensured that a greater number of individuals obtain the benefits of this phenomenon (Brush, Edelman, & Manolova, 2015). Therefore, rather than looking at globalization in a negative light, it is essential to weigh its benefits to those businesses that have been able to remain competitive because of it. Under such circumstances, globalization would not be looked upon as such a bad thing at all.

Globalization can be considered to be based on competition between businesses. This is because it promotes lower production costs which are essentially a competitive advantage for those businesses that have the best strategies and capabilities to survive in the globalized environment. Furthermore, there are other competitive advantages for businesses especially considering that they are better able to have access to untapped markets, a diversity of services, as well as investment opportunities which ensure that they can swiftly expand in a manner that allows them to remain competitive. The competitiveness brought about by globalization can be considered an essential means of making sure that there is the advancement of business interests. This is especially the case considering that once a business that develops a certain product or service goes global, it is essential for its rivals in the market to follow suit otherwise, they end up losing their competitive advantage. Thus, while globalization is about growth, it is also about the establishment of a powerful competitive position so that a business can be able to maximize its potential. The considerable business growth that has been seen since the advent of globalization in the contemporary world has been based on the competitive advantage that it offers. Those businesses that cannot stay competitive through the development of products or services that are in high demand end up collapsing while those with the greatest competitive advantage continue to thrive. Businesses in a globalized world have to ensure that they maintain the highest standards in order to ensure that they remain competitive.

A number of companies have come to realize the advantage of making sure that they maintain their headquarters in their home countries while outsourcing their production to other countries. This is a consequence of globalization which has ensured that these companies have the option of diversifying their operations in order to not only remain competitive, but also to thrive in the market. Without the competitive advantages that are provided by the establishment of globalization, it is likely that businesses would have remained in local markets where they would not have the incentives to improve their products to remain competitive. Furthermore, local markets can become saturated and globalization provides businesses with the means of tapping into new markets for their products. The achievement of this goal ensures that there is the creation of means to bring about strategies aimed at rapid expansion and the making of profit. Therefore, businesses promote globalization because it is the best means through which they can be able to increase the number of people that they sell to, and also have an opportunity to benefit from the massive production savings that can be found in producing goods overseas.