Global Competition

In: Business and Management

Submitted By layla2134
Words 435
Pages 2
The effect of global competition on an organization’s strategies for maximizing profits.
To talk about global competition is necessary to define what competition is. Competition as a set of patterns or actions taken to obtain the best and highest performance in a particular field of action, in the business aspect is the continuous transformation from companies that want to stay positioned in the market relative to other companies in the same economic activity.
On the other hand, the "global economy" is one in which goods, services, people, skills, and ideas move freely across geographic borders, ie the range is no longer just national but spreads to other countries.
Globalization on the other hand, is the diffusion of innovations worldwide economic and political and cultural adjustments that accompany it, fostering international integration, which has increased substantially over the past generation, and through it, globalized markets and industries can obtain financial capital in a market and used for the purchase of raw material in another.
The global market in turn, are those business relationships between companies in a country with others, requiring the creation of innovative products, attractive domestic and international consumers.
In this sense, global competition is business competitiveness to achieve a return of equal magnitude in domestic as well as international ones, which will provide the following benefits: 1. Cost reduction worldwide, 2. Domestic production to create products that can be global, 3. Export into a short time span, 4. Increased access to technology.

Being part of the global competition, companies can reap the following benefits: 1. Socio-economic, political and demographic changes 2. Elimination of barriers to free trade (tariff disarmament, unification of product certification standards, and…...

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