September 8, 2010

The Positive Effects of Globalization to Small Business

In my previous blog post, I have tackled the subject on whether globalization is to blame for unemployment. This is precisely because outsourcing is the new trend and most employees feel that their job security is being threatened. Since I have addressed that issue previously, I will now be discussing more on the topic of the positive effects of globalization to local businesses. Globalization is responsible for creating millions of jobs all over the world and it also is the reason why imported products are available anywhere for consumers.

According to the encyclopedia of small business, globalization had undergone reassessments on whether the positive far outweighs the negative effects of globalization. This argument is subjective and therefore the controversies surrounding globalization can be used to either support or oppose it. While it is true that there are negative impacts, it cannot be denied that there are more positive effects of globalization to small businesses. Here are my take-aways:

  • Globalization broadens the access of goods and services. So both consumers and companies are given the opportunity to obtain a wider range of goods and services.
  • If a small business plans to expand to cover the international market, there is a better access to external finance and this in turn would enhance the emergence of worldwide financial markets.
  • International travel and tourism would increase, creating more opportunities for small business growth and jobs for locals as well.

No comments: