BUS 412wa3 - 1) Globalization has many benefits and costs...

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1) Globalization has many benefits and costs to account for when making a decision to globalize an organization. One of the main benefits of globalization is the opportunity for an increase in economic production. Countries or companies can increase production if they have a comparative advantage in one particular industry and use it to obtain other resources or goods they may need that they cannot as easily produce. Globalization also helps to reduce pricing for goods because they are able to be produced in other countries. Developing countries will also usually benefit from globalization because it will provide new technologies and foreign investment funds in their country to help them evolve and improve conditions. The costs of globalization are also apparent and people that oppose globalization have valid arguments to why it may not always be good. Globalization tends to lead to job insecurity because when companies look for cheaper labor in other countries, they run the risk of closing production or manufacturing plants in other areas, leading to layoffs. Companies may also look to areas where labor laws are not as strict, or where environmental standards are also not as strict and this can lead to safety and health issues in
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This note was uploaded on 07/12/2011 for the course BUS 101 taught by Professor Noname during the Spring '11 term at Albany State University.

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BUS 412wa3 - 1) Globalization has many benefits and costs...

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