Discuss the pros and cons of globalization from the perspective of Multinational Enterprises and that of host nations using appropriate examples.
A decade ago, Youtube which is one of the world’s largest video sharing and hosting sites had a lot of competitors in the world. each country might have had at least one video-sharing company. But how had Youtube beat other companies down and gain the summit? Here, we can find the pros of globalization. Companies’ growth strategies are based on knowing what customers need. As many companies which satisfy customer’s need and feel a sense of crisis owing to the same field, they have to make a ceaseless effort not to fall behind in the competition. Also, these kinds of acts can pull innovation or convenience to customers. In this sense, not only competition in the nation but also competition with all over the world is one of the biggest pros to satisfy customer’s want.
But, in the view of Multinational Enterprises and that of host nations, the cons are they might afraid of the market impact of consumers and the press. for example, Uniqlo, a Japanese company that entered the Korean market, gained popularity with good quality and low price so that they had more than 180 stores in Korea Until the commercial aired on October 15, 2019. The ads are mocked and degraded that the Japanese military sexual slavery and existing for Uniqlo for the boycott that has further riled. As a result, more than 40 stores were closed, leaving only 140 stores. (Of course impact of Corona has to be considered.) It is a disadvantage of globalization from the perspective of the host nation and Multinational Enterprises that if the trend changes rapidly and there is no insight to properly grasp the concept of globalization, where communication with consumers is important, it can lose its competitiveness quickly.
reference
- https://www.youtube.com/watch?v=xgmRCVTarEo
- http://www.koreaherald.com/view.php?ud=20191020000244
- https://blog.hootsuite.com/youtube-stats-marketers/
- International BusinessStuart Wall; Sonal Minocha
