Question

Globalization of Business and Finance

Post a clear and logical response in 200 words to the following question, providing specific examples to support your answers.

What specific areas of business and finance have changed due to globalization?

Answer 1

Globalization has changed certain specific areas of business and finance.

Impact of globalization on business: Globalization has changed areas of business with regards to competition, exchange of technology, and information transfer. Globalization has led to increased levels of competition as customers now have large multitude of choices to select from. Globalization has given customers access to high quality products at low prices and this has led to increased competition. Business has been impacted by exchange of technology and this has benefitted businesses as they are now able to exploit new business opportunities in a systematic and tangible manner. Lastly globalization has led to knowledge and information transfer in a much easier manner and this has helped businesses and corporations across the world.

Impact of globalization on finance: The area of finance has become more dynamic thanks to globalization which has increased the levels of mergers and acquisitions, takeovers and leveraged buyouts. New instruments of finance are now being used and financial products are now tailor made to be able to better meet needs and expectations of customers. Companies are now increasingly borrowing from overseas market to ensure that their borrowings are at optimal interest rates through instruments like external commercial borrowings (ECBs).

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