Globalization

When a business goes into the global market, there are both good and bad aspects that must be looked at. The decision to go global affects the business, the laborer, and the consumer all on different levels. Sometimes companies fail to realize this and as they are taking that step to go global, take a few falls as they proceed.

The advantages of globalization for a business include the opportunity to gain a bigger market area, which will help to increase sales. They also have the opportunity to hire in other countries, bringing the labor expenses down and the capability for bigger production. With these two facts, a company’s bottom line can have a major change for the better. For the laborer in those countries, it brings in jobs and opportunities that would not be possible without globalization. It will help to stimulate their economy and also create a positive bond between the both countries. And for the consumer, the choices in products and services are made more vast them ever before. It gives them the opportunity to experience the products of other countries without having to actually visit them. The good example of this was the one of McDonalds opening in a different country and even though the weather wasn’t at its best, thousands still came out to have that taste of American Fast Food. For the consumer, there also is less price inflation because of products being made cheaper and companies being able to keep the rise of end costs not as steep.

The disadvantages of globalization that face these three groups are big ones to consider. For the business the disadvantages are the risk of being ridiculed by opponents of globalization and losing that customer base. They also will be more closely watched for unethical behaviors, and nit picked for any slight deviance will put them in an unwanted spot light. Businesses will also incur new costs for global marketing and vying for good managers and people to market the product or service. If good management is not hired, it can be difficult and if not properly managed, and control can be lost. For the laborer, local jobs may be lost due to outsourcing and hiring out of country manufactures. And for the consumer, they are faced with many challenges and temptations of increasing in spending and possibly living outside of their means; they are increasing their debt. Many are faced with a new characteristic of materialism and increasing the want verses need feeling. The cultures of the consumers are also at stake when styles are adapted and become more westernized. The globalization of the fast food industry also gives that temptation of buying the cheaper and faster way of meals, and sacrificing the health of the individual.

These advantages and disadvantages for bringing a company into the global market are ones that are important for a company to consider when making that decision.