Globalization remains to be one of the most controversial debates in the whole world as there are people who support it while others oppose it based on various reasons. Nevertheless, despite the controversies modern regarding globalization, recent evidence shows that globalization is inevitable in the world. For instance, based on the survey that was done by the Wells Fargo, about 87% of the US companies strongly believe that global expansion is essential in achieving long-term growth and success (Rossum, 2017). Besides, many companies are expanding to the international market for various reasons such as gaining new market, achieve diversification, and acquire a competitive advantage. Therefore, I am for globalization due to its many benefits. With increased technologies, the world has become a global village, and companies and countries can take advantage of globalization to achieve sustainability and long-term success.
As a result, I recommend my company to go global. I highly recommend my furniture company to expand to the United Kingdom (UK) market, especially through a strategic alliance. One of the main reasons why I recommend my company to go global is because of enhanced diversification. The company is expanding into the UK market to diversify its assets, which is essential in protecting it from hidden events or uncertainties. Consequently, the company will be able to offset the negative growth that is linked to one market by operating in a thriving global market (Rossum, 2017). At the same time, I recommend my company to go global to venture into new international markets. The furniture company will be able to reach new customers in the UK market, leading to increased sales and profitability. Hence, I recommend my furniture company to go global.
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Globalization has a significant impact on the marketplace as a whole. First, globalization impacts the market as a whole by creating a free international trade or market. Based on the principle of comparative advantage that was developed by David Ricardo, globalization makes countries to import products that incur a high cost to produce and export commodities that can cheaply be produced (Moak, 2017). Therefore, globalization leads to a free international marketplace. Consequently, globalization leads to a high level of efficiency and effectiveness of the market as a whole while at the same time it enhances productivity. Secondly, globalization expands the marketplace, making it possible for companies in both developed and developing countries to access the global market ( Samimi & Jenatabadi, 2014) . Globalization improves the accessibility of international market of various companies regardless of their location.
Finally, my opinion has changed from the beginning of the course to now, especially based on what I have learned in class. Importantly, I now embrace the concept of globalization, particularly after I realized that it is highly beneficial to both economies and companies. Initially, I believed that globalization only favors developed countries and established companies while developing countries and small firms were not benefiting from globalization. However, currently, I know that globalization benefits the whole world. Both small and established companies can benefit from globalization when they are strategic in their approach and activities ( Goryakin et al ., 2015) . Currently, what I have learned through the course changed my opinion towards globalization. Nevertheless, it is important for countries to be aware of some of the negative consequences of globalization. For instance, it is possible for globalization to pose a serious threat to the critical and strategic local industries. Hence, despite the many benefits of globalization, companies, and countries should be cautious in their approach to venturing into the global market.
References
Goryakin, Y., Lobstein, T., James, W. P. T., & Suhrcke, M. (2015). The impact of economic, political and social globalization on overweight and obesity in the 56 low and middle -income countries. Social Science & Medicine , 133 , 67-76.
Moak, K. (2017, March 12). Why the world should embrace globalization. Asia Times. Retrieved from http://www.atimes.com/world-embrace-globalization/?cn-reloaded=1
Rossum, J. (2017, December 18). 5 benefits of international expansion. The Business Journals . Retrieved from https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2017/12/5-benefits-of-international-expansion.html
Samimi, P., & Jenatabadi, H. S. (2014). Globalization and economic growth: Empirical evidence on the role of complementarities. PloS one , 9 (4).
