Explain the challenges and opportunities of Globalization.
Challenges and opportunities of Globalization
Globalization comes with different opportunities for the entire world. But it also has many challenges. Globalization provides different companies to come in to the international market and present their product or services without many restrictions. This opportunity also presents a challenge to those businesses which are run by limited resources and do not have the capacity to compete with international level huge corporations when it comes to providing a product at a certain price in the international market. According to World Bank, globalization may have adverse effect on the economies of developing and underdeveloped countries (Wolfensohn, 2001). Many countries could find it difficult to absorb globalization pressure which could bring in product that would damage its internal economy due to the prices of the alien products being much cheaper than what is produced internally.
Globalization has opportunities available in different fields for multinational organizations. For example telecommunication companies have been expanding their services rapidly around their world with each passing moment.