PHL/320 – Critical Thinking and the Decision Making Process
Mr. Howard Kersey
June 29, 2015
Globalization is it Good or Bad for a Business? (1, Premise) Globalization is good for business because it creates opportunities and efficiencies in the open market. Technology today provides greater communication inside and outside the country which allows businesses to manage their customers, suppliers and distribution more effectively; (1, Conclusion) greater efficiencies brings bigger business. (2, Premise) The broader market allows for better pricing of supplies, (2, Conclusion) which in turn, the savings could be passed on to the customer. In addition, (3, Premise) globalization builds a market for businesses to sell their products just as easy within the United States as it does outside the United States; (3, Conclusion) larger markets will increase sales. Some would say that globalization allows for higher outsourcing of jobs and to some extent that is true, however, if the production wasn’t outsourced many of those businesses wouldn’t be able to compete at all. By moving production overseas, they are able to produce a product that can be imported to the United States and distributed here, creating jobs. (4, Premise) The downside to globalization is the increased competition in a broader market; (4, Conclusion) the risk is too great. The increased competition can create a market that makes it difficult to leverage pricing. (5, Premise) Suppliers can become more selective when it comes to negotiating pricing and who they extend credit to; (5, Conclusion) the ability pay is the key. Because suppliers have the ability to be more selective, they can focus on those customers that have a higher likelihood of being able to pay for the goods and/or services they are providing.
Example of Deductive Reasoning: * The broader market allows for better pricing and the deductive reasoning would be that because there would be a savings on the front end, it would be likely (“could”) be a savings to the customer.
Example of Inductive Reasoning: * Globalization builds a market for businesses to sell their products just as easy within the United States as it does outside the United States; the inductive reasoning would be because of the ease to sell in the broader market there is the ability to sell more product (“increase sales”).