Introduction
Globalization is a key belief that has emerged because of the maximum essential component in enterprise over the previous couple of decades. Globalization is an almost inevitable result of accelerated printing speeds in history, if not since the Renaissance and the first Industrial Revolution (Burlacu et al., 2018). This phenomenon has a whole lot of outcomes in the economy, enterprise life, society, and the environment, and nearly every organization has been touched with the aid of using those developments. These adjustments are, in most cases, because of extended opposition in addition to fast technological and facts switch advancements. To fight those adjustments, companies need to recall a whole lot of factors of globalization’s key outcomes.
Main body
Primarily globalization started with the ability to exchange information and technology between different countries and continents. Today, information is the most expensive and valuable factor of production. Information can be easily transferred and traded from one country to another. When a company has the ability to harness knowledge and information, it can adapt to the changing global environment. This issue is comparable to the issue of technology transfer in the global market. A fast-paced market requires rapid knowledge transfer and efficient use of this knowledge and information.
The use of new technologies by entrepreneurs and internationally oriented companies to open up new economic opportunities is one of the most prominent examples of globalization. Internet and e-commerce activities are especially promising for SMEs who want to expand their reach to new overseas markets. Technology is also one of the most important tools for determining competition and product quality. On the other hand, this comes at a considerable cost to the company. To improve sales and product quality, companies need to use the latest technology. As a result of globalization, the speed of technology transfer and improvement has increased. The market is driven by customer expectations. Companies in capital-intensive markets are more vulnerable and need to adapt quickly to changing market expectations. These companies need to have effective technology management in place.
One of the reasons why globalization affected business both in the USA and India a lot is that it increased the competitiveness of the market. This statement will be associated with product and provider prices, goal markets, generation adaptation, short response, and organization production, amongst different things. An organization’s marketplace proportion grows while it produces at a decreased value and sells at a decreased value. Customers have a wide variety of alternatives withinside the marketplace, which impacts their behavior: they need to buy items and offerings quicker and with greater success than before. They additionally count on accurate pleasant, and affordable rates. All of those expectancies require a response from the organization; otherwise, income will decline, and income and marketplace proportion might be lost. Because price, product and provider pleasant, and custom options are all international marketplace demands, an organization ought to continuously be prepared.
The impact of globalization on the competitiveness of the US economy can be summarized as concerns about the country’s manufacturing profile and its impact on the country’s prosperity and prosperity. A production profile is a snapshot of a country’s tradable raw materials and services at a particular point in time. Long before the relatively recent rise of trade and cross-border production networks, the production profile of the US economy evolved according to its given competitive advantage and the level of its development (Onalan & Basegmez, 2018). As the United States became industrialized and prosperous in the 19th and 20th centuries, a comparative advantage in capital-intensive and knowledge-intensive production emerged, and labor-intensive industries such as the textiles and light industry began to contribute to the US economy for a long time. Time Intensifying competition with foreign countries has made these industries unprofitable in the United States.
As tariff and non-tariff barriers to trade have been removed over the last half-century, the resulting increase in international trade is characteristic of globalization. The United States has long been the world’s largest importer and continues to compete with Germany and Japan for the title of the world’s largest exporter (Kumar & Jain, 2019). With strong international trade relations, the US economy is increasingly investing in global trade networks and increased foreign direct investment as companies seek the most efficient way to deliver goods and services to consumers.
Globalization has brought many positive benefits to the Indian industry, especially with large foreign investments in pharmaceuticals, oil, and manufacturing. Huge amounts of foreign direct investment have flowed into the Indian economy, significantly boosting India’s GDP (Sen & Dasgupta, 2018). As a result of the globalization of the Indian industry, many international companies have set up factories in India, especially in the pharmaceutical, BPO, oil, manufacturing, and chemical sectors, helping to create jobs for many people in India. This has helped reduce the country’s unemployment and poverty rates. In addition, one of the impacts of globalization on Indian industry is the introduction of cutting-edge technology that helps foreign companies to advance the Indian industry technologically.
Conclusion
In conclusion, since globalization started to affect the economy of the USA and India, it has had various positive and negative impacts on business. On the one hand, it created opportunities to exchange technology and information, which allowed to make business processes more efficient. Globalization made the USA one of the largest exporters in the world and has provided India with new investments in many economic sectors. On the other hand, globalization of the economy has increased the competition in the market for both countries.
References
Burlacu, S., Gutu, C., & Matei, F. O. (2018). Globalization–pros and cons. Calitatea, 19(S1), 122-125.
Kumar, M., & Jain, M. (2019). A study of Trade patterns in the USA Market. International Journal of Research in Social Sciences, 9(2). Web.
Onalan, O., & Basegmez, H. (2018). Estimation of economic growth using Grey Cobb-Douglas production function: An application for US economy. Journal of Business Economics and Finance, 7(2), 178-190. Web.
Sen, S., & Dasgupta, Z. (2018). Financialisation and corporate investments: the Indian case. Review of Keynesian Economics, 6(1), 96-113. Web.