Angelika order 3096711.edited.docx

Angelika order 3096711.edited.docx - Question 1...

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Question 1: globalization benefits and challenges As a consequence of globalization and its fast integration of economies and societies, people are increasingly living in an interdependent globe. National barriers to the flow of people, products and services, and capital are dismantling down and policies, processes, and platforms are standardizing. These are some of the challenges and benefits associated with globalization. Increase in and application of technology Thanks to globalization, the increase and use of technology in the widespread markets across the world has increased productivity and innovation in recent time. Technological progress is the main driver of the betterment of standard of living and incomes and is the key to how global development is made and share across nations. Globalization allows businesses to acquire easy access to foreign knowledge and adopt innovative foreign technologies to increase their business productivity. Liberalization of cross-border trade and resource movement Globalization has made most governments to lower restriction on foreign investment and trade as a way of responding to increased interests of local consumers and traders to obtain foreign products and services so that to enhance their standards of living. The increase of economic blocs like the European Union among others have facilitated mechanisms that increase accessibility to several foreign markets. Increase in global competition The rise of foreign competition frequently influences businesses to expand globally so that to get access to foreign opportunities and to enhance their competitiveness and operational flexibility. Cost Globalization enables reduced costs and therefore, businesses acquire resources at better prices and produce best by using the least quantity of resources at a comparative advantage. Reduced costs enable effective production, decreased prices of goods, encourage economic development, and consequently making products more affordable for consumers. Resources and market However, globalization is known to increase the volatility of markets and resources. It increases pressures on resources, thus making products volatile.
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Question2: strategic challenges caused by globalization Globalization has caused new challenges on business risk, diversification strategies, and supply chain. Business risk Globalization has changed and increased the risks which businesses and society experience. Risks have increased as a consequence of globalization. This introduced a series of new risks such as vulnerabilities arise from the application of shared infrastructures like transport, internet, and energy and other new systemic shocks like increase of oil prices and fluctuating currency rates adversely affect business activities.
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