The benefits and challenges of globalization for both companies and Literature review

The benefits and challenges of globalization for both companies and national economies - Literature review Example Unlike in the past, today governments are promoting foreign competition and investment in the local economies. Globalization has had both positive and negative impact on businesses and national economies. While some companies and economies have hugely benefited from globalization, others have been on the receiving end. This paper is aimed at identifying the various benefits and challenges of globalization to both companies and national economies. Globalization has really made the world a small place and it is the businesses that have benefitted the most out of this. Globalization has opened new markets and opportunities for the companies. Globalization has increased the opportunity for revenue generation as companies can now establish business opportunities in foreign markets through subsidiaries and partnerships. They can even export goods and products to new markets outside of their domestic market increasing generation of revenue by manifold. Companies have access to resources that were earlier not accessible. Raw materials, skills, man power are now easily and cheaply accessible to companies from different counties. The resources which were either not present or expensive in the parent country can be now be accessed in other countries anywhere in the world. Cheap labor available in South Asian countries as a result of globalization is an example of this which many big companies in the developed countries in the west have effectively. China has transformed into a manufacturing hub for companies around the world due to cheap labor and friendly trade policies. Companies have markets across boundaries for their products and services. Access to new markets has opened greater opportunity for growth and expansion. Globalization has allowed companies to reach a wider audience and develop a larger customer base. Companies are no more handicapped by competing in a matured market. They can always find new markets and