Q:

What is the importance of globalization?

A:

Globalization allows countries to benefit from economic synergy and collaborate in handling political, social and economic challenges. A global economy expands the reach of buyers and sellers for governments and countries. A broader marketplace allows producers to fetch more for their goods, and a global supply network gives public and private entities more buying options.

Know More

Full Answer

Globalization also increases opportunities for companies to expand operations in foreign markets. By accepting foreign investment, a government promotes build-up of its infrastructure. Foreign companies may also hire local employees, which increases domestic employment levels. American companies expand into foreign markets, develop new revenue streams and bring some of that money back into their U.S. operations. This increased capital allows for business expansion and increased levels of hiring.

Government leaders are able to communicate about ways to mutually improve economic conditions and share in the positive economic results. Openness between governments and industry leaders contributes to shared knowledge and resources. Many industries hold international meetings in which companies share insights and trends that benefit all involved.

More domestic competition also forces some companies to grow internationally or risk failure. Developing nations present opportunities to not only develop new revenue streams, but tap into new pipelines for capital.

Learn more in Economics

Related Questions

  • Q:

    What are the four stages of globalization?

    A:

    The four stages of globalization are domestic marketing, export marketing, international/multinational marketing and global marketing, according to Zeepedia.com. Global marketing means a firm sells products and services in a majority of countries around the world, duplicating its national efforts in international subsidiaries.

    Full Answer >
    Filed Under:
  • Q:

    Is globalization a good or bad thing?

    A:

    Globalization is generally regarded as a good thing because it creates open market opportunities and fosters efficiency between suppliers, partners and customers through a network of distribution; for example, a company can sell electronics in the United States or Japan with equal ease. This type of efficiency allows for the ease of integration between markets for optimal management of inventory and distribution while boosting aggregate demand and helping to grow the employment potential and income of the world economy.

    Full Answer >
    Filed Under:
  • Q:

    What are the advantages and disadvantages of globalization?

    A:

    The advantages of globalization include employment and education while the disadvantages include loss of culture and health issues. Globalization brings countries together to trade and do business with each other.

    Full Answer >
    Filed Under:
  • Q:

    How do consumers benefit from business competition?

    A:

    Consumers derive several key benefits from business competition, including higher quality products, a larger variety of similar products, better prices and greater accessibility in finding products. Companies regularly compete among themselves, hoping to win consumer trust and revenue. Companies looking to improve their image and attract the highest volume of sales create products with more aesthetic appeal, greater performance and other commendable features.

    Full Answer >
    Filed Under:

Explore