Globalization creates more opportunities for UK business than threats, to what extent do you agree with this statement (40 makers)
Globalization is the growing trend towards worldwide markets in products, capital and labor, unrestricted by barriers. Globalization is not a new process but it has accelerated in recent years with the rapid growth of multinational companies and with the expansion of free trade with fewer quotas on imports. There are many key features of globalization, which has made an impact on business strategies such as; increased international trade, freer movement of workers between countries and finally the growth of multinational businesses in all countries. These create both potential opportunities but also limitations to businesses. In this essay I will discuss both sides.
The expansion of national businesses has helped to raise productivity and efficiency in the UK economy. This provides a solid foundation and sustaining a comparative advantage in the areas where the UK still has some world class manufacturing businesses. Inward investment allows for the application of better manufacturing techniques, this could include Just-in-time supply strategies, which also speeds up the process of applying new technologies and spreading information. Honda use this system of JIT in the UK market, by doing this is creates more competitors within the business because you always order the right amount, which will keep your inventories low which therefore, means your costs will be lower. By Honda having this advantage it allows them to invest there saved money elsewhere in the business.
Globalization creates threats for UK businesses because it has intensified the competition with in other businesses. Due to the rising import penetration and also the switch of manufacturing to find a lower-cost production centres in Eastern Europe and South Asia, this has caused a fall in output and therefore thousands of jobs are lost in the UK each year. By...
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