The global business environment has evolved dramatically over the past several years. These changes come with both positive and negative aspects that companies now face within this global economy. The pros and cons of globalization provide businesses with a set of challenges as well as rewards for doing business on a global scale versus strictly domestic ventures. Some advantages of globalization are: access to global expertise, ease of entry into target markets, and the cost of business within the new market. While some disadvantages of globalization are: costs of business within a new market, lack of comparable supplies abroad, and the added difficulty in managing diverse working groups.
The ability to tap into the vast resources available to businesses on a global scale can prove to benefit the company in many ways. Having access to a talent pool of new individuals with specific strengths, technical, intellectual or both, allows a company to diversify its staff bringing forth a new set of possibilities in running the business. This also allows for increased optimization of functions across a company by sharing resources throughout the globe within countries that may have more expertise or access to different technologies to best meet the business’ goals. By developing locations within foreign markets or partnering with foreign firms, this permits companies to develop a presence within the market which can in turn optimize the services and products offered by the company as a whole. For example, DHL offers global shipping options for businesses throughout the globe. By understanding the needs and priority behind their services, the company has established a strong global presence to provide better services taking these concerns into account. “As a significant cross-border shipper, DHL is focused on meeting the supply chain demands created by globalization. DHL provides local logistics know-how and expertise in international supply chains. This...
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