Globalization is definitely a very important trend within the business world during this time. Many benefits and advantages can emerge when spreading a company’s products, services, and people across all countries. Specifically for companies and firms, one such advantage is economies of scale. By engaging in globalization, a firm is able to tap into a much larger, more effective market to sell their products, goods, or services. By selling more, the company’s revenues, margins, and profits would increase, leading to increased capital flows for companies. Outsourcing is another major way companies can benefit from globalization. Outsourcing allows companies to gain access to lower-cost inputs in other countries and would, therefore, provide cost savings. Globalization also offers companies to gain specific market opportunities that may not be available in their current locations.

For these advantages to come to fruition, the market and society most definitely play a role. The market needs to be ready and willing to receive these companies’ goods and services. Demand from the market and society is crucial for globalization to lead to advantages for firms.