Describe the Concept of Globalization

Describe the concept of globalization.What are the major opportunities and challenges that globalization has created for business organization?
Globalization refers to a fundamental shift that is occurring in the world economy.The world is progressively moving away from a structure in which national economies are relatively isolated from each other,towards a structure in which national economies are merging into one huge interdependent global economic system.This trend is commonly referred to as globalization.The trend towards globalization is creating many opportunities for businesses to expand their revenues,drive down their costs,and boost their profits.For example,many Canadian firms are now exporting to previously closed foreign markets.By doing so,these firms are simultaneously expanding their sales and driving down their costs through additional economies of scale.Globalization has also created challenges for business organizations.For example,managers now have to grapple with a wide range of globalization related issues.Examples of these issues include: should we export,should we build a plant in a foreign country,should we modify our products to suite the tastes of each of our foreign customers,and how do we respond to foreign competition? These questions often do not have easy answers,but are very important to the future competitiveness of business organizations.