Globalization has proved to be the best way to regulate the economic instability because of which every other country is trying their hard to convince foreign companies to come and invest in their country. Foreign companies do not only increase the level of variety for the people of country but also helps in increasing the living and working standards so that quality changes can be brought into that country. Globalization has shown its impact on many sector but the areas which are really benefitted with the rise in globalization are discussed below:
- Boost in the market:
In order to increase the living standard it is important to have high level of products into the market and when people see those products they tend to buy them and the people who cannot afford them work harder to reach to a stabilized level. Everything needs a kick and when mesmerising products attract you, you tend to work harder to buy them and not only this when foreign company gets settled into one’s country then it brings a tough competition for the local companies. Some accepts defeat and shut their doors whereas some take this challenge and keeps on fighting and in the race of being best they try to provide best from their side. Without competition no one will think to work harder as they do not have the fear of losing market but when neck to neck competition is given then you can sit back and watch, and you will see them coming up with their best. So, globalization also acts as a challenge for the local companies which force them to work harder and better which ultimately leads to a better country.
- Advantage to the private sector:
Rise of globalization has highly benefitted the private sector and has come up as a biggest threat to the public sector as companies are able to import as much as they can so they are able to expand their business as much as they can which has become a disadvantage for the public sector because if public sector is able to provide products all the time then it can lead to abolishing of public sector. When the public sector gets into danger and extinct then the private sector can regulate prices as per their wish and the buyers will have no other option than buying. As it has increased the import facility similarly it has increased export facilities because of which foreign companies buys semi-finished products in bulk in a cheaper price and then sells those in much higher price and that too in their brand name.
Globalization has brought any advantages and also disadvantages for the local businesses and to make things in favour one need to be clever and smart enough to operate and as other companies can enter in our market your company can also enter into some other country’s market. Globalization has become easy comparatively to the previous year’s situation when entry into other country’s market was very difficult.
