Globalization in today's context would mean the Companies to step out of national frontiers and make forays into the foreign lands through various means to establish business ventures. It is an expensive process and only those companies which have abundant resources to do so take it up to their advantage.

The rationale behind going global are the following:

1. The company increases its revenue by establishing business opportunities through subsidiaries in the foreign countries or even through exports to them.

2. The company gets the resources in terms of manpower, skills and raw material cheaply which might not be available in the country of origin or the country of the parent company.

3. The company finds markets across its national borders for its products and services.

4. The company can expand its business opportunities in terms of production, marketing, advertising, servicing etc. in specific terms suited to the foreign markets subject to various feasibility counts.

The BENEFITS of globalization or internationalization can be of the following kinds:

BENEFITS to :-

1. The Parent Company: The company stands to gain in its profit motive through its expansion processes geographically in ways mentioned above.

2. The country of origin : The country of origin stands to gain from from the profits and revenues generated in foreign lands by its subsidiary operations , through various repatriations.

3. The foreign country:
a) The foreign countries usually the logically and reasonably the lesser developed countries tend to gain through the Foreign Investments by the Parent companies.

b) They stand to gain valuable foreign exchange which are required for their loan repayments and various developmental measures.

c)These countries and their local companies gain technical know-how and expertise through alliances , licenses and joint ventures with the parent company.

d)Trade and Tourism in the less developed partner countries gets facilitated through various linkages.

e) The social and economic well being of the usually backward and poor communities gets a boost in upliftment measures.

4. All/Both the countries:

Both countries move ahead in their own respective ways of progress.Globalization also brings about proper mix of culture and values of differing nature. It also promotes international trading between the countries.

Learn more about this author, Pankaj Mohan Prasad.
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