Question

How has your current employer or any previous employer been affected by globalization? For instance, does your company compete with lower-cost imports?

Answer 1

let's suppose that the previous employer was running a departmental store in India.the departmental store has a kind of monopolistic condition in the economy and generally it was providing services

• inelastic price structure
• delivery charges for home delivery
• higher profit margin
• less competition in the market
• huge market share in the economy.

but when India adapted the New industrial policy concerned with globalisation and FDI (foreign direct investment ) was permissible then the business dealings were adversely impacted due to the immense competition with the big world level business players. the companies like walmart,amazon,flipkart gave competition concerned with the essential and non essential items.various imported goods and services are giving tough competition to the domestic businessmen.

1. these foreign companies enjoys economies of scale due to large scale business dealings.
2. they execute business deals at cut throat level competition and sell product at minimum possible rate
3. they generally provides free home delivery of products
4. they are able to sell huge quantity of goods and services even at low level of margin of profit.
5. they are able to spend a huge amount on advertisement expenditure through print and electronic media which is not possible in case of retail business persons.

therefore it can be concluded that YES the domestic business of the country has been impacted by the imported goods and foreign companies.