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Definition of Impact of Globalization in Any Specific Industry
Globalization refers to the disassembling of barriers in trading between countries and integrating economies of countries through corporate investments, trade in services and goods, and flow of finances between countries. In recent years, Globalization has been on the rise across the globe due to quick progress in the domain of technology, particularly in transport and communications.
In many developing countries, changes in economic policies have led to increased globalization. Globalization has a wide range of benefits for any specific industry, such as manufacturing, petroleum, pharmaceutical, chemical and BPO, and it involves the inflow of many foreign investments. It helps in reducing the poverty level and unemployment in countries.
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Impact of Globalization has another benefit on any specific industry, given that state of the art technology is brought along by foreign companies, and it helps make industries technologically more advanced.
However, it also has negative effects on industries – given that higher competition between foreign and domestic companies can lower the profit for companies, as primarily happens in the steel, chemical, manufacturing and pharmaceutical industries. It can also reduce labor costs and lead to removal of many workers from their jobs – as is specifically evident in cement, manufacturing, chemical and pharmaceutical industries.
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