Question

In: Finance

Globalization: how do growing interdependenies among markets impact your business venture

Globalization: how do growing interdependenies among markets impact your business venture

Solutions

Expert Solution

Under globalization, the market of one country is dependent on the market of the other country because of the specialisation captured by one country in specific product (s) or service (s). This interdependanies among markets under glabalization will impact our business venture through:

1) Raising competitions among the inhouse and international markets.

2) Price fixation has been each markets monopoly in their specialised product or service.

3) Maximisation of the profit margin by every market will lead to higher and harder cost of products and services.

4) Inflationary situations under the international market price war leads to wastage of products and services, which affects our revenues also.

5) Higher the prices lead to less purchasing power in the hands of consumer which in turn into contraction of the markets which will lead to degradation of our business than expanding.

Thus, more and more interdependenies of markets will bring more problems for our market and our business ventures .

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