On this note, they are committed to maintain harmony to ensure that this interdependence works out for all of them and that each country can uplift their economy. Furthermore, free trade allows for the broader political interests of all to be tended to, and thus a more prosperous nation. Supporters of peaceful economic globalization, particularly Adam Smith, argues that a globalized economy allows countries to come together in the business market, and to establish common relationships (List 49). However, other great thinkers such as Alexander Hamilton feel that a global economy breeds competition which may eventually result into conflict between nations. The world enjoys harmony due to thriving relationships derived from the formation of a global economy, as seen through the interdependence of nations, and free trade.
The easing or eradication of these restrictions is often referred to as promoting "free trade." Component of liberalization include • Industrial Liberalization • Trade Liberalization • Financial Liberalization • Fiscal Sector Reform Positive impact of liberalization to insurance sector Foreign insurance companies can improve the efficiency of local insurance markets by providing superior customer services, introducing to new products and transfer technological and managerial know-how. Liberalization increases competition between company and encourages a more prominent specialty according to comparative advantages. Role of foreign participation in promoting financial stability are important. it is also authoritative to facilitating the trade and commerce of developing economies.
Job costing will offer a protocol for costs and pricing and make it easier to achieve profits whose numbers will work positively with the ROI. Planned expenditures within the company’s operations will allow the budget control system to increase free cash flow in the company. The new system of budgeting for Ferguson will not only increase profitability for the company but will also increase efficiency for the achievement of the company`s mission.
Globalization has been a start of a new modernized era in history. The source states that as an individual you are given prosperity, stability, and also predictability, and also points out that it helps developing countries modernize and catch up with developed countries, and also reduce poverty since new businesses are formed allowing more employment in the country due to the subsidies that wealthier countries give to them. The person who wrote this source is a pro globalist, and has probably experienced the prosperity that was given to them because of the global trading system. His perspective on globalization suggests that globalization is the key to advancing technology, good relations between countries, and is beneficial event in history. One should embrace the global economy as it creates many roads to achieve your goals in your life, and also for the weaker countries that needs support, but to a degree that the government can intervene with the market.
Exposing an already established product into a new global market can be very rewarding depending on the demand for the good. If the demand is at a profitable margin, supply will come easily since no new resources need to be allocated for production. An increase in revenue will lead to higher productivity amongst workers, not only because of increased wages but because workers are accustomed to the production process. It can also relieve the pressure of innovation and more time to analyze the consumer tendencies in other
Marketing strategies are done in consideration of consumer’s occupations, income, educational level and preference. A good marketing strategy that offers a quality product, good pricing, aftersales services and a good approach to consumers, influences consumers to buy more from one producer over its competitors. Also a good customer service provides the consumers a good experience hence influence them to purchase the product continuously (Maxham, 2001). Increases in consumers’ purchase of a particular product from a given company increase the company’s profit margin and sales thus increase competition to other organizations (Hawkins & Mothersbaugh 2009). Through good sales, other organizations will be interested in forming partners with the successful ones due to promising profit margin.
As things come together a good strategy plan ultimately will lead to name recognition for your company and a distinctive edge or advantage over the competition. Ideally, this is what you look for as a business. You want something that sets you apart from others competing within your market. A competitive advantage is important because it creates a loyal following of consumers, which leads to more revenue for the
Free trade does add wealth to the economy in a country such as America. The main reasons to support free trade are to have a higher standard of living as it allows people to improve their living standard where they can consume better quality products and services at less expensive price. With the increases of standard of living, the people who are in the state of poverty will begin to experience better lifestyles and they will not be discriminated by the richer as now they are almost equally financial stable as the normal working people. Moreover, free trade is a good way for people to create competition and make transformation towards the country. With the existing of competition, the challenges with each other producing similar goods or services makes these businessmen to motivate themselves to discover new technologies around them.
This helps other consumers to build confidence for shopping. It naturally attracts new customers. Thirdly, brand loyalty can increase sales channels. Franchisers need to sell products to make a profit, They often choose companies which have a high degree of brand loyalty to cooperation. Therefore high brand loyalty in the expansion of sale’s channels more smoothly, and easier access to more favorable terms of trade.
BENEFITS OF GLOBALISTION Globalisation brings competition With organizations ability to distribute their products globally, there is an increase in completion with other organizations in the world and by this business would want to get more customers than other business and customers’ needs are being considered. This benefits the customers and the economy and raises the living standards of everybody. The prices become more reasonable and the standard of quality of the products is improved. Rise in opportunities With the increasing demand of services or products of the organizations that trade globally, the company is required to expand its p... ... middle of paper ... ... human trafficking, rhino poaching, and illegal trading of plants to another country. There is also a possibility that the developed countries can operate their businesses in another country which is still a developing country, by employing people and paying them fewer salaries (cheap labor).