Question

. List the primary disadvantages of globalization for a business firm in a country. (business firm, not a country)

Answer 1

Though globalization aids in easy access of resources across countries and helps expand businesses overseas but there are certain disadvantages associated with globalization depending whether the business firm is located in developed or a developing country. It has been claimed that globalization is biased towards the developed nations hence business firms in developing countries find it difficult to compete in the global market. The mobility of labor has resulted into developed countries getting cheap labor while business firms in developing countries finding it hard to get labor at low wages. The skilled labor is migrating to developed nations is a loss for domestic firms in developing nations.