Globalization in today’s business has influenced the operations of many businesses positively, but also led to negative impacts on companies as there have been numerous cases of unfair competition in the global market. Many consumers have also changed on the buying behaviors and in some instances they have relied on certain sources of goods and services. In this case, the essay paper analyzes the impacts of international trade on businesses.
Through international trade, many firms have benefited with increased sales volume for their products leading increased growth for companies. Additionally, many firms have as well improved their quality of goods and services to meet the needs and demands of the growing markets as a result of increased competition. Although many firms have successfully achieved their goals through the international markets, there have been many cases of unfair trade among nations.
Through the international trade, firms in some countries have suffered unfair competition due imported goods that floods in the market. In many cases, importer have contributed to the reduction of value for local goods and services, as some of this firms import cheap goods and in big surplus. As companies compete for markets abroad, this has also increased the cost of production and distribution of goods for many firms. Bigger firms have ended up benefiting in such cases, especially businesses with mass production such Coca Cola in comparison to smaller firms who ends concentrating on only the local market. Similarly, cases of mergers and acquisition have as well become rampant globally, and smaller firm locally have ended up becoming extinct as they are replaced by bigger firms
Conclusion
Although numerous advantages of international trade are commonly viewable among consumers globally, the impact of such trade has as well left many businesses unsound. The international trade has continued to dictate the local market trade, especially on prices for goods and services. At the same time, many firms have lost hope in their trade as they are outdone by international competitors who continue to introduce the products to new market with cheaper rates.