Globalisation Creates More Opportunities for Uk Businesses Essay

globalisation is the return trend towards worldwide markets in products, corking and fight, unrestricted by barriers. Globalization is not a new subprogram and it has accelerated in recent long time with the rapid growth of multi case companies and with the refinement of free transaction with fewer quotas on imports. There are m whatsoever refer features of globalization, which has made an impact on crinkle strategies such as increased world(prenominal)ist trade, freer movement of workers between countries and fin every last(predicate)y the growth of multinational barteres in all countries. These ready both potential opportunities but in any case limitations to businesses. In this essay I entrust discuss both sides.The expansion of national businesses has helped to raise productivity and efficiency in the UK economy. This provides a solid foundation and sustaining a comparative proceeds in the areas where the UK mollify has some world class manufacturing businesses . internal investment allows for the application of better manufacturing techniques, this could take on Just-in-time supply strategies, which also speeds up the process of applying new technologies and spreading information. Honda use this schema of JIT in the UK market, by doing this is creates more than competitors inside the business be originator you always order the full amount, which will keep your inventories low which therefore, core your costs will be lower. By Honda having this advantage it allows them to invest there saved money elsewhere in the business.Globalization creates threats for UK businesses because it has intensified the disputation with in separate businesses. Due to the rising import insight and also the switch of manufacturing to find a lower-cost production centres in Eastern europium and confederation Asia, this has caused a fall in output and therefore thousands of jobs are woolly in the UK each year. By this adventure it leads a rise in un employment, which at last lead to worsening in the regional economic divide. An example of this is Dyson, they locomote from a small village send fored Malmemsbery in the county of Wiltshire to South East Asia, by doing this is made 800 employees spare and this has a broad effect on the local community.Globalization creates more opportunities than threats for UK business ascribable the current movement of globalization the terms of trade have go into the UK favor. For example, the UK economy is moving and and further towards the high production, sale of high take account manufacturing and high knowledge services which run for to neglect in global markets a price higher than the cost of import cheaper manufactured goods e.g. the UK exports of high quality luxuriousness cars such as Bentley and Rolls Royce which seem to command the market around the world the nit comes to luxuriousness cars. Due to the manufactures high expertise it is very difficult for other car compa nies who compliments to enter the market such as Ford or Toyota as they do not have such as expertise in their business. This switch towards more expensive products as the main showtime of exports provides the UK with better living standards and most importantly the opportunity cost of exporting has moved in to the UK favor.Another 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 site of making plenty redundant due to the outsourcing of a business abroad. Another negatively charged claim is that O2 customers, the British commonplace take to have English accents and easier to pronounce label this is not xenophobia on behalf of the British public but instead an ease of exploit as many customers report disappointing calls. This also puts pressure on the businesses as they are taking a adventure of moving abroad but also it may cause the business to bait down real pay levels in the UK serve sectors in order to repugn more effectively.Over the last 12 years the UK has enjoyed a period of keep up economic growth, rising employment and ameliorate living standards. The UK growth has been on a trend rate of 2.5% per annum, which is the one of the lifelong growth phases for nearly 100 years. This vigorous 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 care 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 all over the UK from sea freight transport to international air transport, this long distance change of location leads to pollution being spread all over the UK and the ever rising shell of household and industrial waste leads to an huge external costs.The likes of Tesco and ASDA which freight and ship 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 rack up huge amounts of travelling which leads to a massive increase of carbon footprint.To leave off this quote sums up my views of globalization in the UKThe things that Britain has always had a comparative advantage in selling to the world fiscal services, scientific research, education, entertainment and so on are rising in price. Because of this touch in relative prices, the British people have effectively enjoyed a tremendous pay increase without having to work any harder