• Start a Business
    • 227 Unusual Business Ideas
    • 25K Firesale
    • Best Storage Auctions
    • Bake-A-Dog-A-Bone | Step-By-Step Start-up Resources Guide!
    • Become a Pro Video Game Seller Using Video Game Suppliers Advanced Game Selling Techniques
    • Becoming an Event Planner
    • Buy And Sell Cars For Profit – Be Your Own Boss – Make Easy $300 to $3000 PROFIT per Car! – Home
    • Car Dealer License- Your Guide to Success
    • Clickbank: Pet Sitting Business Start up Kit for Pet Sitters – The Six-Figure Pet Sitting Academy™
    • Coffee Profit Lab | Profit Growth for Coffee Shops
    • Courses | GeoPilgrim
    • Dairy Farming Guide by Momekh | Just Add Venture
    • Digital Publishing Empire – Globalcademy
    • Earn $100k /yr As A Business Broker
    • Earn A Huge Income Tinting Windows
  • Personal Finance
    • A Roadmap to ease your Financial Life is HERE – Stress Proof Your Money
    • Credit Bureau Secrets | Your credit troubles can stop today!
    • Enhanced Identity Theft Protection Without The Monthly Fees – ID Theft Deterrent
    • Creating Wealth Without Risk™ – Capture Profit Rates of 16%, 18%, 24%, up to 36% Guaranteed by United States Law with Certain and Secure Tax Lien Certificates
    • Property Tax Consulting Course
    • Incorporation Tax Secrets Revealed
    • Structured Settlements Guide – Learn What You Must & Win Big!
  • Marketing
    • Andy Bounds Online
    • Attraction Marketing Blueprint
    • Bob Oros – sales training, brochures, sales copy, articles, seminars and marketing support for the foodservice industry.
    • Customer Focus Books | Training Programs >>That’s Customer Focus
    • Develop a marketing plan specific to your business that will grow sales & profits with this easy to follow template based system | Marketing Plan Builder
    • Expert Small Business Marketing Help
    • Holistic Marketing Certification
    • LinkedOn Autopilot – Generate More Leads For Your Business Using LinkedIn — LinkedOnAutopilot
    • Lunch-hour Marketing Breakthrough
    • Marketing For Hair Salons
    • Marketing Gurus’ Secrets Program
    • Target Your Market – Boost Your Profits
  • Investing & Financing
    • Beat the Markets with Trading Systems | Skilled Academy
    • Become a member – Real Trades for Real Traders
    • Build Your Own Portfolio
    • Buy/Sell Arrow Scalper
    • CandleStick-CrashCourse | Online Trading Video Course
    • Catalyst Stocks – Stock Pick Service, Stock Picks
    • Coin Investment Secrets…Find Out How to Multiply Your Money by Investing in Rare Coins Almost 100% Risk-Free!
    • Emini Trading Course – Learn how to trade S&P 500 and Nasdaq-100 futures contracts.
    • Exotik Signals
    • Fat Pitch Etf Advisory – 50% Commissions
    • Hackingpennystocks.com
    • How To Buy Businesses – No Money Down Business Financing
    • Income Investing Secrets Systems
    • live — Spartan Trader Live
    • Lucrative Strategy – Investment Education (Investion) – Penny Stock Investing
    • Profits For Tradies | Profits For Tradies
    • SBA Loans
    • Sell a Business | Advertise a Business or Franchise for Sale
    • Simple Development Systems Fundraising
  • Real Estate
    • Finding Cash Flow Notes
    • Becoming a Real Estate Agent
    • How to Buy Owner Financed Homes
    • How To Buy & Sell Real Estate In the Bahamas
    • House Flipping Secrets-what The Gurus Don’t Teach You
    • Home Landing Clickbank — No Cash No Credit Real Estate
    • Construction Template Store
    • For sale by owner – fsbo – Information
    • Are You Looking for the Perfect Guide for Wreaking Havoc With Your Real Estate Marketing Campaigns? – Guerrilla Marketing Mayhem
    • Investment Property Success: Home
    • Land Development Model, An Appraisal and Valuation Tool
    • Order Online Real Estate Forms | Real Estate Form Online
    • Quickly Analyze Apartment Building Deals with the Syndicated Deal Analyzer (CB) | Syndicated Deal Analyzer
    • Real Estate Development Made Easy
    • Real Estate Flipper Says: Real Estate Investing Is About To See The Biggest Game Changer Since REIT’S Were Invented
    • Real Estate Investing Course for Profits in Investing
    • Real Estate Investor Websites – Free Real Estate Investor Websites
    • Recurring Commissions For “zero-down” Real Estate Investing Membership
    • Step-By-Step Guide to Wholesaling Real Estate – Learn how to earn $5000+ extra in 30 days or less.
    • StressFreeLandord.com – The Definitive Guide for Builiding a Profitable and Stress-free Real Estate Investing Rental Portfolio
    • Wholesaling Houses: Quick Cash Real Estate Investing!
  • Business Management
    • Breakthroughs Mastery Course – MyBizBreakthroughs
    • Brought to you by Benbon Business Improvement
    • BTM+C – Architectural Fee Proposals, contracts and negotiation
    • Business Credit Building Course
    • Event Planning Perfection – plan events yourself and save
    • Get Mentored Grow Rich – 60% Commission
    • How to Start a Restaurant Business Following a Profitable System
    • Manager’s Guide to Performance Plans
    • Merchant Processing 101.
    • Powerpoint presentations for managers.
    • Internet Global Consultants Co-operation
    • ProjectTemplates® Professional Project Management Templates, Tools & Guides Online
    • Project Management Documents – Guaranteed High Converting Offer On CB
    • Proposal Management Mastery | Proposal Management Training | Bid Management Training
    • Proven Pool Hall Business Plan
    • Restaurant Management Forms and Unique Restaurant Menu Templates
    • Start Building Business Credit Today!
    • Tax Saving Methods of Overseas Corporation
    • The Complete Business Plan Secrets Revealed Business Plan Manual
    • Ultimate Guide for Professional Organizers
    • Systematize Your Business – How to Manage Stress in Business
    • Payment Mastery Video Series
  • About
    • About Me
    • Contact Us
    • Blog
    • Privacy Policy
    • Sitemap

Hot Ideas

Business Idea Generator

  • Business Ideas
  • Franchise Ideas
  • Generate Ideas
  • Unique Ideas
Home Business Ideas How Globalization Affects a Small Business

How Globalization Affects a Small Business

April 16, 2017 By Asif Nazeer Leave a Comment

[ad_1]

Globalization is the process of worldwide efforts towards integrating world views, products, ideas, and other economic activity on an international scale. Developments in transportation, communications, and trade are major factors in globalization. Through this process, different aspects of a business can be spread throughout the world by outsourcing jobs and operations to other countries. The development of globalization has encouraged the reduction of tariffs, quotas, and trade regulation, allowing for a more free-trade market where money, jobs, information, and goods move across borders easily. Globalization affects and is affected by businesses and the environment. Management needs to be aware of global issues and how they will affect business overall. An Italian restaurant in Philadelphia is an example of a business that could be impacted by certain aspects of Globalization. In a culturally rich area with the ability to import goods, operations can easily be affected by economic, political, and social changes.

An example of a global issue that could impact business is tariffs. Tariffs are taxes on imports and exports. Having a current president who is not very big on free trade, tariffs are quite relevant in today’s business world. A business like an Italian restaurant relies heavily on free trade to ensure lower tariffs. For a small, private restaurant owner, it would be ideal to keep the establishment as authentic as possible for customers, which may require importing certain goods straight from Italy. If Italy were to raise tariffs, that could cause a decrease in the business’s profit margin by increasing costs of imported goods. This could result in the need to get rid of employees, which would ultimately cause a decline in production.

Exchange rates are an example of another global issue that would affect an Italian restaurant. Exchange rates let businesses determine how much of one currency can be exchanged for another. Italy’s form of currency is the euro. If the value of the euro were depreciated, it would make Italian exports cheaper, making it easier for an Italian restaurant to purchase authentic ingredients. By purchasing authentic ingredients, the restaurant would become more marketable and attract more customers.

The price of oil is another relevant factor of globalization that would negatively impact an Italian restaurant in Philadelphia. The cost of transportation fluctuates daily because of changing markets, economies, and crude oil costs. During the past few decades, oil prices have fluctuated substantially. When oil prices are on a decline, it encourages the importation of goods from foreign countries like Italy. Subsequently, if oil prices rise, this would make importing from Italy more expensive, which could cause management to seek local distributors. Overall, costs go up. Also, no longer offering authentic Italian ingredients could harm the reputation of the restaurant. Aside from importing, the increase in oil prices would be a disincentive to travel to the restaurant in Philadelphia for those who do not live in the area.

Immigration Is vital to the restaurant industry because many workers in food service are immigrants. The business community is in favor of immigration reform for obvious reasons. Immigrants work for lower wages which is attractive to restaurant managers. They do not require benefits for the most part and are generally hard workers. Our current political climate is not supportive of immigration. If our country were to enact harsher immigration laws, the restaurant could be forced to hire domestic workers at a higher cost.

Many advocates of globalization argue that it makes markets more competitive which causes companies to be more sensitive of consumers. Critics may argue that globalization encourages organizations to make some unethical decisions like exploiting people to labor pools that are not protected by fair pay and fair labor standards. Nonetheless, globalization has a significant effect on businesses. In the case of a very small, niche business, globalization may be more harmful than helpful. Although it aids in gathering items to increase the authenticity of the restaurant, globalization has created many more risk factors for a local firm that does not operate on a global scale. Globalization benefits the free-trade global economy that is supported by many businesses that have an Internet presence and cater to multiple nations; however, it poses a threat to the local food industry in many ways. The fluctuation in immigration influenced by the political climate, changes in trade regulations, and the ever-changing cost of transporting goods create a risk to operate on such a small scale. With many changes occurring in the United States and in the global economy, businesses must be ready and flexible enough to make changes.

[ad_2]

Filed Under: Business Ideas Tagged With: business ideas, list of business ideas, new business ideas, small business ideas, top business ideas

About Asif Nazeer

Former banker helping entrepreneurs generate profitable business ideas

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About the Author

Former banker helping entrepreneurs generate profitable business ideas

Follow Me

  • Email
  • Facebook
  • Google+
  • Linkedin
  • RSS

Recent Posts

  • 6 Top Work at Home Business Ideas
  • Are Work at Home Data Entry Jobs Still Viable
  • Best Work at Home Jobs for Moms
  • Five Work at Home Positions You Can Apply For
  • Need Part Time Work at Home Hours

Topics

... 01032010814 Business ... business ideas business opportunities business tips education entrepreneur Entrepreneur Advice Entrepreneur Motivation Entrepreneurs... Entrepreneurship franchise business opportunities franchise entrepreneur franchise ideas franchise ideas 2015 generate business ideas grant thompson how to How to make money How to make money online ideas innovative business ideas king of random list of business ideas make money make money online methods used to generate business ideas money new business ideas patrick bet david small business small business ideas startup Success the king of random think of a business idea top business ideas top franchise ideas unique business ideas unique home based business ideas unique product ideas valuetainment Work At Home work from home

Time Machine

Idea Categories

Search

© Copyright 2015 Hot-Business-Ideas.com · All Rights Reserved · Powered by A W A Nazeer · Admin