The Opportunities and Threats of Globalization in International business
The globalization provides opportunities to international business operators are as follows:
Political LiberalizationThe 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.
TechnologyThe 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.
CostThe 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.
MarketThe need for expansion of the market to operate competitively is another opportunity to globalize the business.
CompetitionThe 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.