Currently, in some countries, governments invest in industries and businesses in order to move out of the cities and become global brands, businesses or industries. This essay will detail the reasons why the benefits and drawbacks are of equal importance.
To begin with, globalization in industries and businesses has a significant impact on government’s economies because when industries and businesses become global, their market demand by foreign countries and expostation increase. Moreover, the easiest way to improve markets and provide globalization in industries and businesses is government support such as tax reduction or relief ,and investment. Therefore, if micro economic establishments are supported by countries, it will improve either society’s or government’s economic well being. So it is true to say that the government’s support for globalization in businesses and industries provide significant advantages.
However, in recent years, there are many countries whose support results with adverse consequences because balance and consistency are keys for being economically successful in businesses. Furthermore, many countries tend to make illogical investments and being inconsistent with it which causes volatility in the economy. Unfortunately, volatility in the economy leads many countries into bankruptcy because even though economic volatility could cause great earnings in the short term, it always results in sharp decline trends. In other words, if the government makes inconsistent investments without risk analysis, this support could be detrimental.
In conclusion, government support is vital for microeconomic establishments’ market growth and globalization which improve either society’s or government’s economic well-being. In spite of this, if these supports are not done carefully or consistently, they result in economic volatility ,which is the main reason for bankruptcy.