Globalization and why companies expand their territories


It means Integrating your company into the economy of another country by trading with them investing in them and even manufacturing in their country, by doing this you gain many advantages but also a few disadvantages and even the country that you expand into will also get advantages and disadvantages.

It’s an important step for many companies to expand into other countries, there are many reasons for companies to do this. First off by expanding their company they can insert themselves into a whole new economy and  greatly increase the possibilities of their company, the first thing they gain after entering a new economy is the possibility of more profit, if they just stay in their own country and not expand there’s a limit to how high your profits can go but when you enter another country you can now grab your share in that country’s economy.

Now, globalization is not all about selling to another country, you can also buy from another country because sometimes by buying your raw materials from another country you can get cheaper prices and that company gains by getting your money and having that money inserted into their economy.

Once you done all that your company can now be called a Multinational Corporation, on my next post i will explain what does it mean to be a MNC (Multinational Corporation) until then goodbye!

References: Al-Rodhan, Nayef R.F. and Gérard Stoudmann. (2006, 19 June). “Definitions of Globalization: A Comprehensive Overview and a Proposed Definition.” Globalization definition

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