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GLOBALIZATION (Benefits (Increasing sales and profits., Cheaper materials…
GLOBALIZATION
Benefits
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Import products from other countries and sell it to customers in the domestic market- this could be more profitable and producing and selling the good themselves
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Multinational business
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Reasons
Produce goods in countries with low costs, wages.
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Increase market share, spread risks.
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Examples
Unilever - sells cosmetics, toothpaste (U.S.A, Netherlands, England)
Honda (Japan, France, England)
Samsung (Korea, Malaysia, China)
Nestlé (Switzerland, U.S.A, Japan)
Pepsico Foods (Thailand, Singapore, Australia)
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Threats
If the domestic firms cannot compete with the foreign goods’ cheap prices and high quality, they may be forced to close down operations.
More competitive in domestic markets (small local firms can become suppliers to the large multinational firms).
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