The Opportunities and Threats of Globalization in International business

Globalization provides opportunities to international business operators are as follows:

Political Liberalization

The political ideology of any nation removes the barrier to conducting trade activities. There is a friendly environment for the investors to conduct the business which is the major reason for the opportunity for globalization.

Technology

The technology is innovated and novelties are found every day. It is creating the opportunity to globalize as the innovation has made able to operate the business in any corner of the world.

Cost

The opportunity of globalization is the cost factor. To gain economies of scale i.e. efficiency in labor, the businesses are operating all around the world.

Market

The need for expansion of the market to operate competitively is another opportunity to globalize the business.

Competition

The competitive intensity is raising due to which business investors are more influenced to operate globally to grab the opportunity.

However, there are several threats to an international business operation which has a serious impact on business.

The threat of uncertainty

There is the uncertainty of macro forces in the outside world.

Marginalization

The effect of marginalization is creating economic stress that results in inequality in income distribution.

The threat to national sovereignty

The term "Think Globally, Act Locally" is now misused. There is an effect on the nation's sovereignty regarding objectives and policies, dependencies of weak nations, and cultural homogeneity.

Comments

AnabellJune 28, 2019 at 6:58 AM
Hey, I just read out your blog, it's quite interesting and informative thank you for sharing it..personally, i like Catalyst for international business expansion strategy. They provide coaching and consultancy at affordable rates.
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saivenkatDecember 22, 2020 at 11:23 PM
Nice blog has been shared by you. it will be really helpful to many peoples who are all working under the technology.thank you for sharing this blog.
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LeadershipgirlFebruary 9, 2021 at 4:38 AM
Thanks for sharing your narrative on opportunities and threats posed by globalization. Learning about international market and exploring international business opportunities, surely broadens one's perspective.
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UnknownMay 29, 2021 at 12:58 AM
Thanks it has helped alot
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