Unit 407 - International Business Strategy

Unit 407 - International Business Strategy

How globalization affects the country's economy?

Globalization has had an increasingly considerable effect on the global marketing as well as on the economy of a country. Increasingly more markets become open to the global organizations since the complexity and cost of overseas operations is cut down due to globalization. Because of globalization, the companies are capable of accessing cheap labor and resources in under developed countries. Apart from allowing them to offer lower prices for their products, it also opens up a more extensive market of individuals having the disposable income for purchasing more services and products. Also, distribution and transportation systems have become more efficient than before, making it cheaper, faster, and easier for the economies to get their services and goods to the customers. Electronic transfers have additionally made receiving and making payments much more secure and faster. Finance is more conveniently accessible to the organizations as well as consumers due to the globalization of several providers. The interest of investors has increased in expanding their investments over an extensive variety of markets for the order of reducing their inclusive risk level. An elevated availability of capital makes it much more convenient for the companies to finance their efforts in international marketing. All these benefits imparted by globalization to the distinct business in turn benefit the overall economy of a country.

What are the principle areas of concerns in relation to globalization? What events have occurred as a result of the concerns about globalization and how have they impacted on global trade bodies?

Globalized has raised the sense of competition in the market, thereby raising the significance of efficacious global marketing. Several organizations may not depend on the fact that they are the sole player in a local market that has been held for long; there are novel contenders from overseas emerging all the time. This has reduced the demand of products in the markets amongst the global trade bodies. Globalization has revolutionized the manner in which people shop. Customers are better capable of shopping around for good deals and are geared up for purchasing from overseas without essentially seeing the products personally. This is another area of concern since this enhances the risk that the customers lose interest in the products. Marketers in the past have made the most of the demand budding from the developed areas of the world, ...