Is globalization good or not good for a business?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The best answer to this is probably “yes.”  Globalization can be good or bad for a business.  The answer for any particular business really depends on what that company’s business is and where they do it.

For example, globalization has been very good for some businesses in developing countries.   Businesses in China that manufacture goods for export have done very well because of globalization.  Firms that run call centers in India and the Philippines have also been helped by globalization.  These are firms that provide goods or services that are needed in this globalized world.

By contrast, there are clearly firms that are harmed by globalization.  These are generally companies that cannot compete against foreign firms.  The classic example of this is manufacturing firms in developed countries, particularly firms that produce goods using unskilled labor.  These are firms like those which produced clothing in the United States.  This type of firm is seriously harmed by globalization.

Thus, we can say that globalization can harm or help a company, depending on what sort of company it is and where it does business.

 

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