What risk do firms encounter from the globalisation of production and markets?
Answers
Business firms in developing countries are dominated by Multinational companies from the economically developed nations.
Smaller firms are unable to face the stiff competition from large scale companies.
Companies suffer because of regulatory changes in the foreign markets which may ruin their sale prospects. Ex- Indian pharmacy companies and IT companies suffer from laws and amendments in the US.
The risks that the firms encounter during the globalization process during the marketing and production are:
- The risk of customer satisfaction
- Risk of increasing the overall sales of the company
- Risk of employing the best employees in the production units.
Explanation:
The major risk that is involved in the globalization of the markets includes analyzing the ability of the organization and its resources in spreading the global business towards other countries and acquiring the maximum number of customers.
TO KNOW MORE:
Explain the process of globalization
https://brainly.in/question/7258311
What is the role of globalisation process
https://brainly.in/question/1908023