International Trade and Foreign Investment

The current era of globalization is not a new concept. It is one of the market outlook for the world because of international trade and foreign investment conditions. Globalisation in other countries to remove trade barriers between the wholesalers between them are responsible for promoting free trade. The accelerating economic growth and economic development, it is set. The benefits of globalization in all sectors of the economy can be seen. “The backbone of the economy known as the” industry is no exception to this.

The manufacturer of globalization opens up new horizons. When they start international trade growth and increased global industry witnessed the endless benefits. These benefits in terms of the Indian economy can be good witnesses. India’s industry since the early 1990s, the globalization of international markets, it has to be on top of the list. Globalization gives the manufacturer an advantage, some of which are as follows:

Production costs:

With a good degree of globalization of production is for producers to reduce costs. Now the United States or other expensive producer in the country, the Philippines, the production of low-cost countries like China and India be the outsourcing of work. They outsource to countries like India, highly skilled manpower available in the local market if there is a big part of their costs can be saved. Manufacturers now because inexpensive commodity that can be used in other countries, the globalization of labor is readily available.

Extending the range of possibilities:

The globalization of production of low as well, but in other countries to exploit opportunities and resources provide opportunities for manufacturers. If the local market is saturated, manufacturers are now in the global market access opportunities to move into. If the needs of a diverse customer base catering to big profits for the wholesale manufacturers finish rendering.

Rejected dependence on property sales

Because of globalization, many producers in home sales reduced its dependency. Maintaining a favorable local market conditions, with smaller companies still remains. Head to the local market, rendering the manufacturer if you have not, will the world market because there is a possibility. So we are also effective for the manufacturer of globalization as a tool to survive.

Investment diversification:

Globalization is a manufacturer of many eggs in one basket, you can not place. It is because of the benefits of diversity reduces the risk of loss. Many manufacturers in the world, with several product lines now operate globally. In the local market a particular product category is not the best selling items, and the other in the global market can be a hot topic. In this way, the loss of a single product line results in the overall profitability of the business to other product lines will be offset by the benefits.

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Thursday, June 23rd, 2011 International Business

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