Globalization and its effect on business have been a serious topic of discussion in international marketing for years. The opening of globalization to many countries have profits and losses to the organization in many countries. The main impact of globalization is the expansion of markets and resources becoming available at cheaper rates.
Globalization integrates the people and companies worldwide for the modernization and mutual benefits. Through bilateral trade agreements are made between countries for facilitating the business between different countries. The investments between countries increases through such agreements. The information technology and communications related factors also favors the globalization process. Through Internet and mobile phone revolution globalization of business is much easier compared to previous years.
One of the main advantage of globalization is the market expansion a business can obtain. A company selling products locally can look for selling the products globally for increasing the profits. Through globalization efforts, it is easy to have a positive influence in a foreign country. It is also true that the resources available for the production is cheaper in certain countries and this can be utilized for making products which can be marketed in other countries. Outsourcing of work to other countries is also possible through the globalization initiatives.