Global Business Environment

5 May 2017

Free Flow of Capital – Globalization helps free flow of capital from one country to another country. Globalization increases capital flow from surplus countries to the needy countries, which in turn increase the global investment. . Free Flow of Technology – Globalization helps in the flow of technology from advanced countries to the developing countries. This helps the developing countries to implement new technology. 3. Increase in Industrialization – Free flow of capital along with the technology enables the developing countries to boost industrialization in their countries.

This ultimately increases global industrialization. 4. Spread up of Production Facilities Throughout the Globe – Globalization of production, leads to spread up of manufacturing facilities in all the lobal countries depending upon the locational and various favourable production factors. 5. Balanced Development of World Economies – With the flow of capital, technology, and locating the manufacturing facilities in developing countries, the developing countries industrialise their economies.

Global Business Environment Essay Example

This in turn leads to balanced development of other countries. 6. Increase in Production and Consumption – Increased in industrialization in the globe leads to increase in production and thus results in balanced industrial development along with increase in income enhances the levels of consumption. 7. Lower Price with High Quality – Increased industrialization, spread up of technology, increased production and consumption level enable the companies to produce and sell the products of high quality at low prices. 8.

Cultural Exchange and Demand for a Variety of Products – Globalization reduces the physical distances among the countries and enables people of different countries to acquire the culture of other countries. – The cultural exchange, in turn, makes the people demand a variety of products which are being consumed in other countries. – Ex: ‘American pizza’ in India, ‘Hyderabadi biryani’ and Masala dosa’ on abroad. 9. Increase in Employment and Income developing countries. – As such, it reduces Job opportunities in advanced countries and alternatively creates Job opportunities in developing countries.

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