Why is it important that companies consider becoming more global? Solution Globalization has been a major development in the early 21st century, as companies are taking advantage of opportunities to grow beyond domestic borders. Despite challenges, including transportation and logistics, supplier costs, variable marketing strategies and cultural uncertainty, global companies have some significant advantages over local businesses. More Revenue Streams A primary motive to become global is to gain access to new sources of revenue. Companies that have saturated their local markets and dried up growth opportunities close to home can turn to global expansion to grow their business. Successful navigation in multiple national markets provides a much broader customer base from which you can generate business. Creating new revenue while minimizing costs is key to earning profits. Resources and Supplies Along with driving more business, global companies are in a race for capital. As countries become more industrialized and consumer income rises, they become ripe for multinational companies looking to cash in. Global companies can use capital raised in other markets for further marketing and expansion. Plus, global companies also gain access to new materials and resources and have the ability to form strategic alliances around the globe. This leads to synergy as new relationships and suppliers are used to strengthen the global brand. Market Development Globalization also provides your business some level of insulation from slumping performance in one country or region. In essence, global customer diversity spreads your business risks across a broader customer base. This means that if the economy, supply issues, environment or government regulations in one country negatively affect you, you can still find success in other countries. Domestic companies are often overwhelmed by economic shifts in the local market. Larger Talent Pool While creating a strong global work culture is difficult, global companies have access to a much greater pool of talent. Many set up global work teams where marketing or human resources employees can collaborate with colleagues virtually throughout the company. Having diverse employees who can interact well with diverse populations and business partners is also an advantage. The ability too move people around to different locations and roles is another HR benefit. .

1. Why is it important that companies consider becoming more global?
Solution
Globalization has been a major development in the early 21st century, as companies are taking
advantage of opportunities to grow beyond domestic borders. Despite challenges, including
transportation and logistics, supplier costs, variable marketing strategies and cultural uncertainty,
global companies have some significant advantages over local businesses.
More Revenue Streams
A primary motive to become global is to gain access to new sources of revenue. Companies that
have saturated their local markets and dried up growth opportunities close to home can turn to
global expansion to grow their business. Successful navigation in multiple national markets
provides a much broader customer base from which you can generate business. Creating new
revenue while minimizing costs is key to earning profits.
Resources and Supplies
Along with driving more business, global companies are in a race for capital. As countries
become more industrialized and consumer income rises, they become ripe for multinational
companies looking to cash in. Global companies can use capital raised in other markets for
further marketing and expansion. Plus, global companies also gain access to new materials and
resources and have the ability to form strategic alliances around the globe. This leads to synergy
as new relationships and suppliers are used to strengthen the global brand.
Market Development
Globalization also provides your business some level of insulation from slumping performance
in one country or region. In essence, global customer diversity spreads your business risks across
a broader customer base. This means that if the economy, supply issues, environment or
government regulations in one country negatively affect you, you can still find success in other
countries. Domestic companies are often overwhelmed by economic shifts in the local market.
Larger Talent Pool

2. While creating a strong global work culture is difficult, global companies have access to a much
greater pool of talent. Many set up global work teams where marketing or human resources
employees can collaborate with colleagues virtually throughout the company. Having diverse
employees who can interact well with diverse populations and business partners is also an
advantage. The ability too move people around to different locations and roles is another HR
benefit.