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How Globalization and Large Corporations Affect Small Business - Research Paper Example

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With the evidence of continuous human interaction witnessed almost in all sectors of the society, and with inventions and innovations in technology, it has made globalization and market liberalization a reality in the contemporary world. …
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How Globalization and Large Corporations Affect Small Business
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"How Globalization and Large Corporations Affect Small Business"

Download file to see previous pages As a result, numerous studies have been conducted to point out the exact effects that in deed globalization and large corporations have impacted especially on business (Sachs 66). It is imperative to note that large corporations more often have had a bigger and stronger financial muscle than small businesses making them enjoy many advantages unlike small business. The purpose of this paper is to show how globalization has impacted positively to small businesses across the globe. According to discussion presented on Business World seminar conducted at London, on June 2012, various points of arguments both pro and against have been presented in relation to the discussion. From the differing point of views and opinion about the issue of globalization, it is noted that most of the people who have gone against it come from the least developed countries or regions (Berberoglu 117). Representatives from East African chamber of commerce stated that because most businesses and industries in their regions are young and unstable, the stiff competition brought about by globalization and large corporations put their industry in the risk of collapsing. ...
In a different but similar business event held at Sao Paolo, Brazil, organized and funded by Forbes early 2013, representatives from Brazil Trade unions also pointed out that large corporations such the coca- cola company has the ability and financial capacity to buy the small businesses and therefore the threat of monopoly is real. Fluminense de Refrigerantes is a bottling company in Brazil that Coca Cola bought. This was in relation to a local beverage industry that was under threat. With monopoly, scholars and experts as were noted in a One Young World: The future of Business Leadership article that such corporations might exploit consumers when competition is eliminated (Global Economics 13). Microsoft is an example of a company that was exploiting consumers due to its monopoly at the PC operating system market. Contributors in the article such as Ariel Schwartz further argued that with globalization, it has expanded markets and in turn increased demand. Such large corporations therefore further enjoy economy of scale making their goods and services relatively cheap unlike small businesses as is presented in Globalization and Localization Association newsletter website. A good example of a wal mart is the trade on general motors parts. Most of the spare parts are cheaply impoted from China to America. The Chinese manufactures sell their goods cheaply since they are cheaply made. However, Sir Richard Branson of Virgin Atlantic, stated in his speech at the Young Leader’s Forum conducted in New York State, in October 2013, argued and reasoned on the contrary and categorically stated that globalization and large corporations is the way forward for business in global context ...Download file to see next pagesRead More
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