Globalization

Positive Impacts of Globalization

Expansion into New Markets

-Access to a larger customer base, by venturing in new countries
-Diversification of revenue streams, brands have diversified their revenue streams by expaning into new markets and offering a wide range of products beyond their original products
-Increased market share, businesses can increase their market share globally through new markets in countries and parterning with local companies

An example would be would be Airbnb who are a home-rental start-up are now starting to get into the new market of flight booking. Which is an airline reservation tool.

Access to New Talent and Resources

-Ability to hire into a global pool of skilled workers, you can hire talented workers from all over the world. Workers who have different perspectives and various different skills
-Cost saving through outsourcing work, business take their produces to low-cost countries which allows them to also have an increase in competitiveness
-Access to new technologies and raw materials, businesses have access to materials globally and allowing to improve their products.

An example would be Tesla, which is an electric vehicle manufacturer, they access new technology and raw materials, they also hire people with skills all over the world.

Increased Competition

-Promotes innovation and efficiency , companies have faced increased competition globally, driving businesses to continuosly innovate and improve their products and processess
-Leads to better prices for consumers, business facing a lot of competition globally leading to lower prices for consumers and greater access to afforadble goods

An example of this would be Walmart, they have faced servere competition, espeically by no frills which encouraged walmart to lower prices for consumers and bring out a lot of sales.

Negative Impacts of Globalization

Environmental Impacts

Globalization can cause environmental impacts,
Since globalization has a increase in more trade and business activity. This can increase in pollution, loss of natural resources and the environment withering away. There is also an increased risk in catching different types of diseases like for example Ebola.

An example would be pollution was trades gets more people it means more people are traveling and using transportation and in order to to use transportation you are causing pollution which then impacts the environment in a unhealthy way.

Competitions of Local businesses

Since globalization gives more power to companies
that has more economical power and have more resources to fully supply all of their different chains. Since it gives more power it makes it harder for small business to compete with the big businesses it might have a risk of elimination of local businesses.

An example would be gladiator burger which is a local burger food chain across the Greater area of Toronto and because of globalization it may have difficulty keeping up with the competition of bigger international burger chains like, Popeyes, five guys, burger king and etc. They specifically might have difficulty with the pricing since with the big business because of globalization and access to resources, recipes and more, they might be able to reduce their costs and price significally less then the local businesses.

Larger gap between rich and poor

Since globalization creates bigger gaps between the rich and poor, making the rich more rich and the poor more poor, since globalization helps support more jobs types like managers, owners, investors and more. This can lead to exploiting workers in poor countries and with poor wages.

an example is brazil, with brazil being a poor country and most of its people don't seem to have any jobs or land or ways to improve their economic status. There is a large gap between the poor and rich people and because of globalization it does indeed make the rich more rich but for the poor people, they are being manipulated by their government and political parties to work jobs that have low wage and long hours.