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

  1. For maximization  of   profits-Increased  operations  lead   to economies of sale and this leads to expanded profits.
  2. To enhance expansion of markets
  3. To be able to gain access of raw materials and supplier more efficiently
  4. Allow business to draw financial resources from more countries
  5. To lower labour costs through labour intensive operations in countries with lower labour costs
  6. To be able to follow customers who have gone international
  7. To take advantage of favourable laws that reduce barriers of trade

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