Globalisation Creates More Opportunities for Uk Businesses Essay

world(a)isation is the growing trend towards global markets in products, capital and persistence, unrestricted by barriers. globalisation is not a new process just it has accelerated in recent years with the quick process of multinational companies and with the expansion of free transaction with fewer quotas on imports. There are legion(predicate) key features of globalization, which has made an impact on line of work strategies such as add-ond international trade, freer travail of workers between countries and finally the growth of multinational railway linees in all countries. These create both potential opportunities only alike limitations to businesses. In this essay I volition discuss both sides.The expansion of national businesses has helped to bring up productivity and efficiency in the UK economy. This provides a unharmed foundation and sustaining a comparative advantage in the areas where the UK still has some world class manufacturing businesses. inbound commitment allows for the application of better manufacturing techniques, this could include Just-in-time add up strategies, which also speeds up the process of applying new technologies and banquet information. Honda use this system of JIT in the UK market, by doing this is creates to a greater extent competitors within the business be event you unendingly rove the near amount, which will keep your inventories low which in that locationfore, means your cost will be lower. By Honda having this advantage it allows them to invest there saved m unmatchabley elsewhere in the business.Globalization creates threats for UK businesses be front it has intensified the competition with in some other businesses. Due to the rising import penetration and also the vary of manufacturing to find a lower-cost production centres in Eastern Europe and southern Asia, this has caused a come up in output and therefore thousands of jobs are confused in the UK each year. By this happening it lead s a rise in unemployment, which ultimately lead to declension in the regional scotch divide. An example of this is Dyson, they travel from a small village called Malmemsbery in the county of Wiltshire to South East Asia, by doing this is made 800 employees redundant and this has a massive effect on the local community.Globalization creates more opportunities than threats for UK business due the current front man of globalization the terms of trade bemuse move into the UK favor. For example, the UK economy is moving further and further towards the utmost production, sale of high value manufacturing and high association services which tend to command in global markets a price higher than the cost of import cheaper manufactured goods e.g. the UK exports of high quality luxury cars such as Bentley and Rolls Royce which seem to command the market most the world the nit comes to luxury cars. Due to the manufactures high expertise it is very difficult for other car companies who desire to enter the market such as pass oer or Toyota as they do not throw off such as expertise in their business. This switch towards more expensive products as the main man-made lake of exports provides the UK with better living standards and most importantly the probability cost of exporting has moved in to the UK favor.another(prenominal) threat in which globalization has caused is the threats to the UK service industries. O2 outsourced there call centers out to India as it has lower labor costs. This links back to my last point of fashioning people redundant due to the outsourcing of a business abroad. Another negative claim is that O2 customers, the British national prefer to have English accents and easier to pronounce name calling this is not xenophobia on behalf of the British public provided instead an ease of transaction as many customers report unsatisfactory calls. This also puts pressure on the businesses as they are taking a encounter of moving abroad but als o it may cause the business to drive down strong pay levels in the UK serve sectors in order to compete more effectively.Over the last 12 years the UK has enjoyed a period of sustained economic growth, rising employment and improving living standards. The UK growth has been on a trend rate of 2.5% per annum, which is the one of the longest growth phases for nearly 100 years. This muscular trend is due to the rising levels of trade and investment spurred on by international competition.Finally a threat in which globalization can cause is the fear of the effect globalization will cause to the environment. The huge growth in competition in the UK has lead to a massive influx in pollution over the UK from sea freight comport to international air transport, this long distance change of location leads to pollution being spread all over the UK and the ever rising scale of household and industrial waste leads to an enormous external costs.The likes of Tesco and ASDA which freight and venture a variety of food products and cheap galvanic goods has meant that the customer has benefited the most from cheaper costs however this has had a detrimental affect on the environment, with broccoli from Japan, oranges from Florida and lamb from New-Zealand this is meant that these companies are racking up huge amounts of travelling which leads to a massive increase of carbon footprint.To finish this quote sums up my views of globalization in the UKThe things that Britain has always had a comparative advantage in exchange to the world financial services, scientific research, education, entertainment and so on are rising in price. Because of this teddy bear in relative prices, the British people have effectively enjoyed a large pay increase without having to work any harder