What impact does globalisation have on businesses?

Globalisation significantly increases a business’s international influence, as it opens up markets beyond national borders and allows companies to operate and compete on a worldwide scale. This expanded reach can lead to greater brand recognition, enhanced customer bases, and opportunities for collaboration with international partners. By entering new markets, businesses can tap into diverse consumer needs and preferences, driving growth and innovation.

Through globalisation, companies can leverage economies of scale, access to new resources, and various technological advancements. This is crucial for staying competitive in today’s interconnected marketplace. With an increasing presence in multiple countries, businesses can also exert more influence over global supply chains and networks, which enhances their bargaining power and can lead to better pricing strategies and operational advantages.

The other potential impacts mentioned, such as limiting market reach or forcing a reduction in quality standards, are contrary to the fundamental principles of globalisation, which focuses on expansion and enhancement. While simplification of operational management might be a result in certain contexts, the complexities introduced by operating in diverse international markets typically counterbalance that simplification.