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One important benefit of globalisation is that it create a market that promote efficiency through competition and division of labour and functions such as the specialization that allows people and economies to focus on what they do best
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GLOBALIZATION AND THE WORLD ECONOMY Globalisation in general means the effort of a company moving into other territories (outside the national boarders of a country) to sell its goods and services to increase profits as a result of expansion. Globalisation incorporates both opportunities and risks which change the way businesses are managed worldwide. It brings about a well-diversified portfolio for such a company. This is because the company is guarding itself from huge losses in case of economic uncertainty. Significant gain in one company can cover for the losses made in another company. By this, the globalise company would experience constant cost pressure which entice them to continuously produce and improve on its activities. Major companies like Nestle, Shell, Nokia, Ford and Toyota among others have gone global because of the benefits mentioned above. Currently, more and more entities are merging to become supra-multinationals. Companies become more interested in...
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