The process of connecting different people, organizations and governments located in different nations by trading, investing, cash flows, exchanging knowledge and technology can be referred as Globalization. This process can affect the local economies, societies and cultures. Globalizing a business can help in facilitating the goods, services, labor and capital by removing the national border barriers. Most of the businesses today are globalizing because of various reasons like:
- For creating global brands and competitive markets- Firms can enter into new markets and popularize their products more effectively by globalizing the business.
- Technology transfers- Both the firms can be benefited through technology transfers. Innovative products and services can be introduced in markets by exchanging the technologies.
- Time-to-Market Competitiveness- Reacting quickly to the market changes is another reason for globalization.
- Cost competitiveness- Organizations can reduce the price of product as they can get sources like labor and raw materials at very low cost in some countries.
- Government policy- Subsidies offered by some governments can attract the businesses to globalize.
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