Question

Describe the globalization. Explain the reasons for the globalization. Why companies should globalize? Explain with value chain.

Answer 1

Answer-Globalization means the interaction of business, companies, and people through all over the world, in globalization different companies, produce goods and services in all over the world, globalization also includes the exchange of goods and services and technological knowledge between the countries. There are many reasons for globalization but the main reasons for which globalization takes place is for the improvement of transport for the exchange of goods and services, innovation and improved technology from all over the world, for the growth of multinational companies, reduction in trade barriers and unnecessary tariffs. The main and very important reason for the globalization is integration and interaction of domestic business with the world economy. Companies should globalize with value chain are--

1. It will improve the technology and production process of the company which will help the company to achieve its organizational value and goals.

2. It will create new opportunities for the sale of goods and services to the international market which will help companies to achieve its market expansion value.

3. Business will create more revenue through global markets and it will help organization to reach their financial value.

4. It will help in finding out more efficient and effective employees through all over the world and it will help company to achieve its cultural and working environment value.