Answered: Businesses can use globalization to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:### Globalization in Business: Advantages and Strategies **Question: Businesses can use globalization to their advantage by** - creating trade barriers to other countries. - reducing exports to other countries. - finding customers in other countries. - insourcing jobs in other countries. **Explanation of Possible Answers:** 1. **Creating trade barriers to other countries:** - Establishing trade barriers can sometimes protect domestic industries from international competition. However, this approach can limit globalization benefits such as access to a broader market and improved economies of scale. 2. **Reducing exports to other countries:** - Reducing exports might protect domestic supply but can significantly reduce a business’s market reach, potential revenue, and growth opportunities that globalization offers. 3. **Finding customers in other countries:** - This is one of the primary advantages of globalization. By targeting international markets, businesses can expand their customer base, enhance their brand’s international presence, and ultimately increase sales and profitability. 4. **Insourcing jobs in other countries:** - Insourcing involves bringing jobs into a company from external sources or other countries. While it can control costs and improve quality, it is typically known as outsourcing when jobs are moved abroad, which is a common use of globalization. **Correct Answer:** - **Finding customers in other countries.** **Summary:** Globalization provides significant opportunities for businesses to expand their operations and customer base internationally. By leveraging globalization, companies can access new markets, boost their competitiveness, and drive growth more effectively than through protectionist strategies.

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