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The Opportunities and Threats of Globalization in International business

opportunities-threats-globalization

The globalization provides opportunities to international business operators are as follows:

Political Liberalization 

The political ideology of any nation removes the barrier to conduct 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 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. In order to gain economies of scale i.e. efficiency in labor, the businesses are operating all around the world.

Market 

Due to the need for expansion of the market to operate in a competitive manner 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 of 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 the inequality in income distribution.

The threat to national sovereignty

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

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