The size of a company is not important for global trade nowadays - Essay Example

The size of a company is not important for global trade nowadays The size of a company is not much important at present especially inthe era of globalization as people value the customer service and quality of the product rather than the reputation of the company. Current customers have lot of options and they will no more go after a particular brand or product because of its reputation in the market. Global trade is not much influenced by the size of a companyProducts or companies which are able to meet the needs and wants of the people will excel in the global market.

For example, Sony Corporation ruled the electronic equipment industry earlier because of the immense customer faith consumers have in it. But currently lot of other substitute electronic products with superior quality and cheaper price, from different parts of the world are available in almost every local market in the world because of globalization and free trade policies adopted by many countries. For example, Chinese products are causing immense damages to the reputed brands because of the cheaper prices.

Global trade have big impacts on employment, community and the economy of a country. It is difficult for a country to stay away from global market at present because of the inter-linkage of global economies because of globalization. Any problems occurred at some part of the world can cause problems in other parts as well. For example the American financial crisis has resulted in many people losing their jobs including those from overseas countries. The persons returns from America will be a burden for other countries and those countries need to spend heavy amounts for the rehabilitation of such people.

Global trade can impact other communication media also. Internet media (blogs, message boards, podcasts, and video sharing), radio networks, mass-circulation newspapers and magazines all are part of global trade. Globalization boosted the global trade and communication with the help of integration of regional economies, societies, and cultures. For example, reality shows were earlier popular in America and UK like countries. But the increased awareness about the western culture because of global trade activities resulted in exchange of cultural values and reality shows like television programs are nowadays popular in India, Pakistan and Middle Eastern countries.

“The greater financial interdependence of national economies can also increase insecurity among rural populations” (Winkels). Rural population mostly concentrate on agriculture for finding their livelihood. The prices of their crops are inter-linked with the prices of similar crops in other countries because of global trade. For example, coconut oil is extracted from coconuts and coconut growers like to have higher prices for the coconuts they produced. On the other hand if the coconut growing countries import palm oil from other countries as part of global trade, the prices of the coconuts will come down which will affect the coconut growers.

In the urban sector also the competition will become stiff when the global trade activities increase. So the governments should plan proper strategies for their rural and urban sector before going after the global trade blindly. Global trade can influence the global politics and security also. The increase in exchange of workforce and products between countries can cause threats to the security of a country even though it is beneficial for the cultural integration. In short, global trade activities are not much connected to the size of a company.

It can influence global politics, security, culture, employment, community and the economy of a country in many ways. Works cited1. Winkels, Alexandra. 2008. “Mountain Research and Development”. 7 March 2010.