Globalization

Advantage and disadvantage of globalization

Companies which a decade ago felt secure within their national borders, are now facing ever-increasing international competition started by In addition, domestic business environments have been more and more affected by international economic factors, and the capability for small firms to isolate themselves from foreign competition has diminished, especially for firms that operate in global industries stated by Anderson (2004).

‘Globalization makes the rich to richer meanwhile makes the non-richer to poorer,’ this statement defines that

Every firm seek and find that enables it to maintain a position in the marketplace. How firms perceive their market and competitive environments, whether local, regional or global, will influence the opportunities they see for differentiation. The competitive challenge is to outperform rivals in light of internal and external constraints and to satisfy continuously changing consumer wants and needs.

The increasing of production help the companies take an advantage of lower barriers to international trade and investment to disperse is an important part of their production process around the globe. Another advantage is the national differentiated in the cost and quality factors such as labour, energy, land, and capital which allow them to lower their cost structure and boost profit. The trend toward the globalization of production and market has several important implications for competitions within the industry.

An example in Japan, America financial institution such as JP Morgan have been making inroads against Japanese Financial institutions.

The globalization raises both the threat of entry and intentionally competition within formally protected nation markets. This also formed huge opportunity for firms based on those markets. Moreover its stated Hill (2010) steady decline in barriers to cross border trade and investments is opening up many once protected companies based...