Is Globalization an Opportunity or a Threat
                     Is Globalization 
an Opportunity 
or a Threat?
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Is Globalization an Opportunity 
or a Threat?
Globalization has had a great 
impact on society. It affects many 
different stakeholders both in the 
home country and the host 
country in many different ways. 
Business managers, individual 
customers and businesses, entire 
countries, and individuals will all 
feel some effects of globalization.
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What is 
Globalization?
Globalization refers to the growing 
interdependence of world 
economies, cultures, and 
populations. In today's 
interconnected world, it is much 
easier for countries to buy goods 
from faraway places, borrow 
money from investors abroad, or 
hire workers from across the 
globe.
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What is 
Globalization?
These networks are part of a 
larger process called 
globalization. Globalization refers 
to the growing interdependence 
of economic and cultural activities 
across international borders. It 
has been widely debated and 
studied but is still a subject of 
political debate on the impact it 
has on our societies and 
economies.
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Types of 
Globalization
Economic globalization refers 
to the worldwide economic 
integration of national markets 
through a global division of 
labor. Social globalization is the 
process by which cultures are 
influenced by one another and 
the interdependence among 
them increases. 
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Types of 
Globalization
Cultural globalization generally 
refers to the transmission of ideas, 
meanings, and values around the 
globe in such a way in order to 
extend and intensify social 
relations. Political globalization 
refers to an increasing overlap 
between international and 
domestic politics and the 
development of international 
political institutions.
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Types of 
Globalization
Environmental globalization 
involves new communications 
technologies that may allow for 
better monitoring of pollution 
levels in various parts of the 
world by those interested in 
reversing human-caused 
damage.
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Opportunities of 
Globalization
As part of globalization, businesses 
can enter into new markets which 
will result in an increase in sales 
revenue. Hiring cheaper workers in 
underdeveloped and developing 
countries will enable most global 
companies to lower their cost of 
production and result in higher 
gross profits. More choices may 
also lead to higher customer loyalty 
and repeated purchases.
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Opportunities of 
Globalization
Consequently, companies can 
operate more efficiently thanks to 
strong international competition, 
resulting in lower costs and greater 
profits. Lower production costs may 
enable the business to lower the 
prices of goods and services, which 
can make them more price 
competitive against others.
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Opportunities of 
Globalization
What is globalization in business? 
Providing customers with more 
choices, selecting cheaper labor, 
and employing management 
practices that increase efficiency 
are all ways in which globalization 
can benefit a business.
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Opportunities of 
Globalization
New markets mean more 
customers and lower prices, while 
access to cheaper labor means 
higher gross profits. The above 
points denote the importance of 
globalization and this is how it has 
helped companies like Nike, 
McDonalds, Apple, and Samsung to 
expand globally.
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Globalization 
Threats
When a domestic company 
decides to relocate its operations 
to another country where labor is 
much cheaper, local employees in 
a home country will start losing 
their jobs. Consequently, higher 
unemployment is likely to lead to 
lower standards of living.
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Globalization 
Threats
In addition, foreign companies 
may enter the market and gain 
market share, which would make 
it more difficult for other 
companies within the domestic 
country to make money and stay 
afloat. 
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Globalization 
Threats
The final effect would be that some 
companies might go out of business as 
well as many small businesses. This can 
be bad for the economy as well as a 
society because it may cause further 
problems such as lower pay rates; 
employers no longer being willing to 
invest in technologies that improve 
productivity or reduce costs; unequal 
distribution of wealth; negative effects 
on health such as stress or poor diet 
from job insecurity.
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