Globalization And International Sourcing Can Be A Competitive Advantage For Their Company

940 Words Jul 25th, 2016 4 Pages
Globalization has become a highly debated subject in the world of business and politics. That is because globalization is not perfect, and it does not suit every business. Globalization and international sourcing can be a competitive advantage for a company, however it also comes increased risks. Even with an increased risk, globalization has grown in popularity over the past several decades. Many factors have led to this growth including communication and technological advances, increased competition, and higher consumer expectations. Firms must consider the pros and cons of globalization before determining if it is good for their company. The advantages of globalization are increased availability of resources, use of core competencies, access to a larger market, and cheap labor. It also has increased risks, including increased logistical problems, foreign governments, and increased competition.
Much of the debate has to deal with the benefit of cheap labor. Many Americans and politicians condemn the practice of globalization because they feel it takes jobs from Americans that need them. Many companies use lower- wage countries and their large workforce to help cut costs. China, as an example, has a wage rate of around $100 a month. However, for the same work for an American employee could make that in a day or two. While this does take away some jobs from developed countries, these are not skilled jobs that pay well. This also does not mean there is a job shortage in…

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