If the trends of globalization are studied, after the World War I came to an end, massive economic changes would come to the forefront. Globalization aims at transforming the world into a modern society functioning on a single economy. It is the expansion of local businesses and economies, further integrated to operate as an international market (Audi, 2009). Hence, globalization has boosted the growth smaller businesses as well with mobile technology and availability of internet, enabling communication anywhere across the globe. There are multiple reasons as to why the need for globalization cannot be disregarded:
The revolution of internet is the new Industrial revolution
This was one of the biggest revolutions in the industrial sector. Internet provides a virtual marketplace for producers to sell their goods and buyers to purchase the same. This market expands beyond the geographical boundaries of nations. Companies in any nation can attract customers from developed nations like the U.S. towards their own goods and services, human resources and labour at lower costs. Similarly, companies in the U.S. have opportunity to promote their goods online for customer worldwide.
Developing Nations of the world
The thriving examples of prominent and flourishing economies since 2013 are India, China and Brazil. With a whopping population of 2 billion people, these economies hold lucrative business and investment opportunities aiding towards higher growth. For example, countries like the U.S and the U.K outsource their business operations to India for better human resources at reasonably lower costs. This is beneficial for both the home and host countries, promoting growth and development.
Creation of sustainable competitive advantage
Globalization is the saviour of domestic industries in the underdeveloped and developing nations, which were succumbing to the demand for imported goods from stronger economies. Globalization helped these nations attract foreign investment which would generate employment in their own countries and nourish the domestic industries. The foreign multinational investors would also benefit from this, as they would earn profits which can be reinvested in development of their nations. For example, any revenue that the companies make in foreign markets can be brought back to the U.S (home country) and invested in developmental activities.