Today, the world has become a small global village as a result of globalization which also means products produced in one part of the globe gets easily accessible to another part. Even though this has made life easier, there are few consequences the local shops and markets have to suffer. Hence, let us discuss about its merits and demerits in the following paragraphs.
Firstly, let’s start with the disadvantages, as I believe there are some drawbacks to locally produced materials due to globalization. For example, suppose there is a same good, one brought from another nation and one made in the home country and due to advancement in technology or any other reasons the quality and cost of the international one is less than the homemade then surely people will prefer to buy the foreign material. Hence, this will surely decrease the sales of domestic materials which eventually affect the economy of the nation. Moreover, the citizen will be demotivated and might prefer not to continue the production.
However, there are few advantages in introducing such foreign materials. Bringing them into the local community, the homebased businesses might feel pressure to improve their products rather than always selling the same quality. In addition, they might also need other international materials to improve their own goods. Hence, the availability if used properly can benefit their own brand. Moreover, they could also learn the faults in the foreign products and improve in such aspects. Not only this, they might also be encouraged to export their goods to other countries.
In conclusion, international business could hamper earnings of local labels which could affect their mental health; however, such labels also get motivated to uplift their products after receiving such competition.