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Local and international companies under the influence of globalization
Globalization increases competition between companies, I fully agree
with this case, and I believe that globalization is the network of relations
between the economies of countries and the measured human populations,
and therefore it creates a renewable and diversified market that requires local
and international companies to continuously improve their products.
Globalization contributed to removing the obstacles that restricted the
local market, which led to the liberalization in order to import production
requirements without commercial obstacles, so it provided companies with a
competitive advantage by allowing these companies to obtain raw materials
in an inexpensive way, and the opportunity to benefit from low labor costs in
developing countries, taking advantage of the technical expertise and
experience of more advanced economies.
Globalization contributes significantly to increasing the size of
companies because it leads to an increase in cross-border mergers and
acquisitions as it is one of the main factors in increasing the rates of foreign
direct investment. For example, what happened between the two largest
companies in the field of advertising and communications, where the
