The Direct and Indirect impact of Globalization on U.S. based small and mid-sized companies
In order to understand the impact of direct and indirect globalization on small and mid-sized companies, we need to first differentiate between the two. It is important to give both pros and cons to be able to understand the impact.
Globalization is defined as the process of increasing the connectivity and interdependence of the world’s markets and businesses. Some people are for globalization and others are not. It depends entirely on each person’s opinion of what is good, or not good for our country. While doing research on the internet, I discovered that there are 5 main drivers of globalization. They are as follows: technological, political, market, cost and competitive. Depending on the type of small or mid-size business, direct or indirect globalization can have both pros and cons. Companies in today’s society must be open to going international or global if they want to have a successful company.
Indirect impact is something that happens that was not in the original objective or plan. For instance, a mid-size reality company decides to open up a new apartment complex. Let’s say that this new apartment complex is in Utah. As most of us know, Utah is a wide open territory. If the reality company decides to build its apartment complex toward a barren field or away from the city, there is a very good chance that restaurant chains, developers and city officials will decide to start ‘building up’ that area to generate more businesses. In retrospect, the mid-sized reality company just wanted to build a new complex. They did not know for sure that other businesses might be generated around them. This ends up being beneficial to the reality company because of the fact that their tenants will have convenience right at their fingertips.
The direct impact of this same reality company is a thriving rental income. Obviously, the reality company decided to...