Question

How has globalisation transformed the way business is conducted? Explain.

Answer 1

• Expanded Market Reach: Businesses can now sell their goods and services to consumers worldwide, expanding their customer base and potential earnings.
  Example: Apple and Samsung serve billions of people worldwide.
• Outsourcing and Offshoring: Outsourcing products and services to nations like China and India, which have reduced labour costs, can help businesses save expenses while increasing profitability.
  Example: A lot of tech firms contract out software development and customer service.
• Improved Supply Chains: Businesses may now acquire components and raw materials from all over the world thanks to more integrated and efficient supply chains brought about by globalisation.
  Example: Global supply networks are a feature of automakers such as Ford and Toyota.
• Increased Competition: Businesses have to deal with fierce international competition, which promotes innovation, lowers costs, and improves product quality.
  Example: There is fierce competition in the smartphone sector, where international brands are often coming up with new ideas.
• Technological Advancements: Rapid communication and technological improvements have revolutionized corporate operations by facilitating data exchange and real-time cooperation.
  Example: E-commerce sites such as Amazon and Alibaba have transformed the retail industry.
• Cultural Exchange and Branding: More varied product offers result from businesses’ need to modify their marketing tactics to accommodate various cultural norms and customer preferences.
  Example: In several nations, McDonald’s provides menus tailored to the local area.