Globalization helps in increasing the competitive power of business institutions.
#Impacts of globalization pdf full
Or in other words, the market is full of brand equity.īonus: 11 Limitations or Disadvantages of Branding (Explained). This is not only restricted to two durable goods are capital goods but also to normal drinks, cereals, clothes, etc. Brand DevelopmentĪ globalized economy favors the business of branded goods/items. Globalization Makes the process of flow of resources like labour, goods, capital, techniques information, etc. Related: 22 Advantages and Disadvantages of Privatization (Economics). Transfer of Businessĭue to globalization, business Institutions acquire new field for business.įor example, during the Gulf War, Kuwait Bank had transferred its business to Bahrainand sent information through fax for continuing business. This helps in the development of Technical research, discoveries and new techniques of Industrial Production. Globalization makes available technical knowledge worldwide. The exchange rate of money depends on market power on demand and supply power. Globalization has resulted in the development of an independent money market. Such kind of corporations is still establishing. Globalization helps in the development of indigenous multinational companies/corporations along with multinational corporations.
#Impacts of globalization pdf free
Free Determination of Production Capacityĭue to globalization business Institutions themselves cannot fix their production capacity. Related: 13 Negative Effects of Globalization (You Should Know). Globalization results in the expansion of business Institutions because their business area is not restricted to a nation only. National boundaries become meaningless for the multinational companies as they get unrestricted power to exploit resources of the whole world economy. The business Institutions are free to expand their business worldwide. Globalization helps in the expansion of the market for trade and business. The following are the positive effects of globalization on different categories: 1.
The globalization of the economy has also resulted in the globalization of trade and business. Now, every country in the world is adopting the policy of globalization.
Globalization leads to contraction or shortening of the world market.
With respect to developing countries, globalization policy has both positive and negative aspects. Globalization is a process of change resulting from a combination of increasing cross-border activity and the spread of Information Technology, facilitating real-time communication worldwide. Globalization means integrating the economy of a country with the world economy.