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Benefits of Globalization

In: Business and Management

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Benefits of Globalization

Globalization is considered beneficial to the free trade movement among global markets. Globalization creates the opportunity for domestic businesses to compete internationally. It has the ability to tap into a massive potential customer base and still maintain low cost of goods and services. Globalization creates a demand for companies to be driven and motivated. This leads to the development of new products. By keeping companies competitively challenged, the drive among businesses around the world becomes more customer-orientated when developing new innovative products. Through globalization, businesses around the world are given the opportunity to positively impact their societies.

One of the first benefits of globalization that should be considered is its massive potential customer base. According to the World Trade Organization, as of July 23, 2008 there are 153 countries participating in their global organization. The World Trade Organization is the only global organization dealing with the rules of trading between nations. Its goal is to aid producers of goods and services, exporters, and importers in conducting business within the global market. Also, text from scholastic book Understanding Business 9th Edition (page 62) states there are over 6.7 billion potential customers in the global market. At these numbers it would be nearly impossible for a business to enter into the global market and not find a customer base supportive enough to sustain a company.

Another benefit seen through globalization and the free trade movement is the ability to maintain low cost of goods and services. The article “Advantages of Globalization” of Economy Watch stresses that cheap imports from an international level keep a check on the prices leading to lower inflation rates. What this article is discussing is that when...

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