There are many positive attributes for a company to expand in to a global market, globalization. (1, Premise) Economics are one of the key driving factors for an industry in any region of the world. While there are several other advantages to globalization besides economics we will first focus on the economy then further discuss other advantages later within this work. Many western nations have little appreciation for the efficiency of their regions markets in regards to supply and demand. These markets continue to expand and thrive because they aid in the growth of the economy. Since (nontemporal meaning) many countries rely not only on a vast market but also a source of jobs globalization can be a mutually beneficial aspect for not only businesses, but also the economies population. An organization that expands to a global market increases the standards of living in the marketplace in which they do business by bringing with them employment opportunities and new markets/products to the region.
This also increases the standards of living for other regions around the world that may do business such as exporting/importing with that specific country. (1, Conclusion) We may infer that globalization is something that is mutually beneficial for society and all economies as a whole. It allows nations to create jobs and bring new standards of living that may not have been present in that region before. As a result this also aids in building the size of the very market a business will be selling its products to. (2, Premise) As (non-comparison meaning) a company expands globally it also aids in the organizations ability to market on a broader scale. While business that remain local competitors are limited to the scope of their sales and revenue. An organization that can successfully expand to a global market creates a broad open market which can more effectively communicate with partners and customers alike. This makes the process of supply and demand, distribution, and local producers and sellers much easier to manage for an organization.
This is especially true for an organization who expands globally in areas they already may import/sell products. By having a physical location in these regions they can avoid high importing/exporting tariffs and even build brand recognition and foster a strong economy. (2, Conclusion) Therefore globalization creates and fosters open markets and strengthens brand names. A company can greatly increase not only their revenue with globalization, but also the effectiveness of their brand on a global scale. (3, Premise) Given that globalization of businesses and corporations alike have allowed more products and services to be available, while also lowering costs because of specialization.
Foreign exchange rates offer insight and provide benefits to organizations to do business within their countries. A company that expands globally in to a market region can vastly influence the exchange rate. Some organization may opt to do business within a region due to its low exchange rate which may make it easier for a company to establish a physical presence and create jobs. (3, Conclusion) We may conclude that globalization increases the opportunities for products to be sold more broadly worldwide with lower costs.
Deductive & Inductive Reasoning
Deductive reasoning links premises with conclusions. By providing multiple premises within the paper that are true, deductive reasoning narrows the range of possible conclusions under consideration. So as only the one conclusion is left, globalization is beneficial for an organization. Inductive reasoning is in which premises seek to supply strong evidence for the truth of the conclusion, not absolute proof. Within premise two inductive reasoning was used as there is no factual proof that globalization will literally expand a company’s overall sales or the broadness of their market space. With this being said there is strong evidence to suggest an organization can expand its market space if enter a global market.