Origins of globalization
Globalization at a macroeconomic level comes from the closer integration of national economies and the elimination of impediments to the transfer of materials, components, products and staff between them.
Reasons for going international
- For maximization of profits-Increased operations lead to economies of sale and this leads to expanded profits.
- To enhance expansion of markets
- To be able to gain access of raw materials and supplier more efficiently
- Allow business to draw financial resources from more countries
- To lower labour costs through labour intensive operations in countries with lower labour costs
- To be able to follow customers who have gone international
- To take advantage of favourable laws that reduce barriers of trade