As the term implies, globalization is when a business operates on a global scale. It means that a company isn't trying to compete in one specific place or country but in places and countries all over the globe.
Globalization is important in the business world because most of the top companies are those that participate in globalization. They’re businesses that can be found in regions across Earth. Apple is routinely cited as the most valuable brand in the world. Its trillion-dollar valuation is in large part due to globalization. Apple products are available worldwide, and there are Apple stores in places like Ireland and Saudi Arabia.
Not only does globalization allow Apple to reach customers outside of its country of origin (the United States), it also grants them access to a larger labor pool. To save money, Apple can manufacture its products in other countries, like China, where they can tap into a labor pool that requires far less investment.
With more reach and less money spent on the people producing their goods and services, globalization has become a critical means for businesses and their leaders to drive up their worth. Like Apple, Amazon has benefited from globalization. According to a report, it takes a United Kingdom Amazon warehouse worker eight weeks to make what Jeff Bezos, Amazon’s founder, earns in one second.
Even if a business doesn’t aim to compete on a global scale, globalization is still important to them, as they must compete with businesses that possess international power and influence. However, the presence of various “shop local” campaigns suggests that a fair amount of people don’t have a completely admirable view of globalization and its associated business practices.