The term good refers to the act of being desired or approved. In other words, it connotes having the required qualities for a particular role. Globalization alludes to the interaction between companies, people, and governments of diverse nations. Globalization is motivated by international trade and investment supported by information technology. In a business, globalization is essential for various reasons (Walton, 1996).
Premise 1: If businesses incorporate tenets ascribed to globalization into their operations, they become efficient and are able to create an open market. Through globalization, businesses can communicate effectively and efficiently with their partners, customers, and suppliers. The businesses are also able to manage their inventories, supplies, and distribution networks in a better way. The local manufactures can sell their goods in distant markets with similar simplicities and rates to those of their residence countries. For example through globalization, an electronic business situated in New York can sell it products in Tokyo with same ease. It is evident that various businesses have prevailed in more than one location and made big profits (Boudreaux, 2008).
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"Why Globalization Is Good Or Not Good For A Business".
Conclusion 1: From the observation of some businesses doing well in more than one location, it is emergent that globalization is playing an essential role in advancing business operations. Various businesses have open markets and are able to communicate efficiently with their customers and suppliers. This efficiency attributed to globalization is, therefore, good for a business (Boudreaux, 2008).
Premise 2: Globalization helps to create easy credit and rise of control. This ease emerges in terms of flow of money across local and national boundaries and creditors fail to recognize a good and bad borrower, which in turn boosts total demand. Globalization also influences the world goods cycle of income and growth of employment. It is evident that various businesses have experienced easy access to credit and rise in control. Businesses also have a good cycle of income and have created job opportunities (Boudreaux, 2008).
Conclusion 2: the observance of easy credit and the creation of employment in businesses show that globalization is good to businesses. It helps businesses to stamp their control and get credit easily (Boudreaux, 2008).
Premise 3: Globalization helps to lower the percentages associated with marketing costs. It is the responsibility of the businesses to market their products in order to be competitive. The cost of marketing products in more than one country becomes high. This cost increases because different marketing approaches have to be taken for the different countries. Globalization helps to reduce the marketing cost with a big margin as it creates an easy marketing platform (Walton, 1996).
Conclusion 3: it is evident that various businesses have enjoyed low marketing costs. The businesses are no longer required to plan for huge marketing strategies that cost large sums of money. This illustrates that when the marketing costs are low in a business the overall expenditure is reduced hence considerable profits are accrued. These resultant low costs that businesses observe intimate that globalization is good to businesses (Boudreaux, 2008).
Globalization is also not good to the businesses because of various reasons that includes;
Premise 4: Globalization creates new risks and uncertainties to the business. These risks and uncertainties are caused by the high rate of integration of domestic and local markets. There is also intensified competition among corporations, price and profit sways, business, and product destruction. Globalization also creates unstable and unpredictable demand. This instability leads causes the business opportunities and products to become commodities hence have no pricing control and experience pressure from new competitors that impede profitability (Boudreaux, 2008).
Conclusion 4: Globalization brings integration and interaction between local and international markets. The risks and uncertainties related to this interaction are a consequence of globalization. Various companies have experienced these risks hence the resultant evidence that under some circumstances, globalization is not good to businesses (Walton, 1996).
Deductive reasoning refers to the basic form of valid reasoning. This reasoning starts with a general statement that observes the possibility to reach a specific conclusion. The general statements are called premises and the reasoning is meant to determine whether they are true. In this argument, premise1 involves deductive reasoning. The process of deductive reasoning functions to establish the validity of globalization espousing business efficiency and creating open markets. This statement is assumed to be true and the conclusion illustrates that indeed globalization has a positive impact on the businesses. The conclusion shows that as a result of globalization, businesses tend to have broad markets not only in their location but also in different countries. Inductive reasoning draws conclusions from the two statements that are assumed to be true (Boudreaux, 2008).
Inductive reasoning is the process of presenting some data and then determining the general conclusions that can be derived from the data. Inductive reasoning makes broad generalizations from specific observations. In other terms, it deals with determining the theories that could possibly explain the data. In this argument, premise 3 uses inductive reasoning. Reasoning in this case revolves around determining the general conclusions that can be drawn from globalization lowering the rates of marketing costs. The general conclusion drawn from the specific data is that globalization not only reduces the marketing costs but also lowers the overall expenditure of the company that increases profits. In this argument, inductive reasoning is utilized to draw a general conclusion from a specific data set (Walton, 1996).
- Boudreaux, D. (2008). Globalization. Westport, Conn.: Greenwood Press.
- Walton, D. (1996). Argumentation schemes for presumptive reasoning. Mahwah, N.J.: L. Erlbaum Associates.
