2. Globalization is the term now widely used to describe
the increase in worldwide competition between
businesses.
It is also used to describe the increase worldwide trade
and movement of people and capital between
countries.
There are several reasons for this global competition
i.e. Globalization:-
Free trade agreements and economic unions have
reduced protection for industries.
Consumers can purchase goods and services from
other countries with no imports
3. Improved travel links & communications between
all parts of the world have made it easier to
compare prices & qualities of goods from many
countries. This will further help develop as the
internet becomes more widely available
worldwide.
Many countries which used to have very
underdeveloped manufacturing industries have
been building up these businesses very rapidly.
4. OPPORTUNITY
Start selling exports to other
countries-opening up
foreign markets.
Import products from other
countries to sell to
customers in ‘home’
country.
IMPACTS ON BUSINESSES
This increases potential
sales, perhaps in countries
with fast growing markets.
With no trade restrictions it
could be profitable now to
import goods from other
countries & sell them
domestically.
5. THREATS
Increasing imports into
home market from foreign
competitors.
Employees may leave firms
that cannot pay the same or
more than international
competitors.
IMPACTS ON BUSINESSES
If these competitors offer
cheaper products, sales of
local business might fall.
In some professions,
employees will now have
more choices about where
they work & for which
firm-firms will have to
make efforts to keep their
best employees.
