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Globalization creates more opportunities for UK business than threats. To what extent do you agree with this agreement?

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Introduction

Globalization creates more opportunities for UK business than threats. To what extent do you agree with this agreement/ (40 marks) Globalization is the growing trend towards worldwide market in products, capital and labour, unrestricted by barriers. In many years, companies want to increase their sales, profits, or maybe fulfil their ambitions, they started to change themselves and become a multinational company, with the expansion through free trade between countries where the reduction in tariffs or quotas have been helping a company to work better than ever. As globalization is a way to expand the company, there must have opportunities, or else, the company will not do it. Through globalization, businesses will have the greater opportunity for selling goods in other countries. Entering a new market which is not saturate can give the chance to increase sales, economies of scales and improved profitability. For example: China. It has the biggest potential market in the world due to the rapid growth, also the China government policy initiatives spur demand Different companies are exploiting it. ...read more.

Middle

Globalization increases the freedom to arrange mergers and takeover as a means of expansion aboard, like Tesco and Samsung set up a partnership, a conglomerate by Samsung. Homeplus generates sales of more than 3 million. So in a way of joint venture or mergers/ takeover does help to reduce cost, increase the sales, so the profit will be higher. The increase in number of firms expands internationally increases the competition. The give firms the incentives to become more internationally competitive. As the firms innovate more products, the new ideas would help them to increase sales. For example Ben Dawson Furniture, they used the latest computerized machine tools to fashion their products like desks, cabinets in the airy factory-cum-design studio in order to compete with other firms. However, the opportunities of globalizations might also be the threats of it. As businesses from other countries now have freer access to the UK market, so competition rises. Some firms like British furniture industry might wipe out by foreign competition due to the low costs of production, also may not able to cope with the rapid change like economic issues with a combination with competition and so they go bust. ...read more.

Conclusion

In conclusion, I think globalization create more opportunities than threats as firms will grow bigger and bigger. But I think the truth between opportunities and threats is depends on a lot of things. It depends on the business itself, like culture and the product they sell. For example, Mothercare sells baby equipment, toiletries and clothes, where the expectant mother and her baby share characteristic that they are very similar everywhere, so there will be a constant amount of sales. Or like Tesco Homeplus, where they adopt management where only 4 UK workers in the management level, so the rest of the Korean workers are able to make sure Homeplus is localizated. It also depends on the PeD of the products, and the economy conditions. In the case of furniture firm, their products are furniture, they have high durability, so the demand of them will be inelastic, also the production cost is high, they might find struggle in sales compared to Tesco or Mothercare. ?? ?? ?? ?? Samuel Ma ...read more.

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