Question

The benefits and costs of globalization sound very straightforward as discussed in our textbook. Yet, there are complexities to consider as companies attempt to sell their goods and services in a global economy. (These complexities also apply to NGOs and IGOs that attempt to provide services globally.) Should for-profit businesses attempt to reach only affluent markets, or is there reason for them to pursue customers and clients at the base of the pyramid (BOP)? Conduct research to support your answer with real-world example(s); be sure to cite sources of your examples. (250 words).

Answer 1

Answer:

These days, MNCs ought to consider globalization approaches by means of another point of view of comprehensive capitalism. For firms having a drive to battle at the base of the pyramid and with the way to do as such, the potential returns involve development and profits and tremendous commitments to humankind. Countries that despite everything don't have the most recent framework/items to fulfill principal human needs are an ideal proving ground for thinking of environmentally economical techniques and items for the entire world.

Likewise, MNC investment at the base of the pyramid infers hoisting a few people out of desperation and halting social decay, turning away political issue , and natural emergency that makes certain to go on if the rest between rich and poor countries keeps on expanding

Inverse to the well known assumptions, poor people can be a very productive market — especially if MNCs change their business systems. This isn't a market which grants for the ordinary quest for high margins; rather, benefits or profits are moved by volumes and by capital adequacy. Margins are required to be low (by winning guidelines), be that as it may, the unit sales can be high. Directors who focus on gross margins will forego the opportunity at the base of the pyramid; supervisors or managers who redesign and focus on economic profitability will be compensated or rewarded.