Globalization Essay Example | Topics and Well Written Essays - 250 words - 10

Globalization - Essay Example Globalization also allows businesses to take up cost cutting measures by outsourcing production to countries where they can avail the benefits of cheaper labor, raw material, equipment, processing etc. that being said, operating in an international market also poses a number of threats some of the major ones being compliance to laws of specific countries of operations and increased competition For example, Nike outsourced its production to Asia and was criticized greatly for not considering the significant amount of child labor used in the factories there. Thus, the need have a strategic competitive edge is imperative for success in this era of globalization. For governments, globalization is seen as a threat as well as an opportunity. On one hand it hampers the growth of local industries and adds the aspect of uncertainty to the economic construct of a country. This is why many countries make it difficult for foreign companies to enter and operate in the home country, as a measure to protect their local industries to promote self-sufficiency For example; China has restrictive import policies so that the local industry does not suffer as a result of increasing trade. On the up side, globalization opens doors to trade and investment, boosting the economy (Imf.org). It also allows greater consumer power of choice and the influx of foreign business helps in the development of technology and communication locally. Lastly, it helps in countries to maintain positive relationships with each other, contributing to world peace and regional harmony like the trade relationship between US and European Union aimed at bringing both regions together th rough trade. Agreements like the transatlantic trade and investment partnerships regulate and support such trade