POISTIVE AND NEGATIVE IMPACT OF GLOBALIZATION

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 Positive impacts of Globalization

·       Globalization has opened up new horizons in terms of sourcing. Organizations can now source a variety of goods and services from all around the world, resulting in higher quality and reduced costs. For example, in the pharmaceutical sector, we get API from a variety of nations, the most common of which are China and India. This benefits our company in terms of cost savings and improved quality.

·       Globalization not only open doors for procurement and sourcing but also grabbing new horizon for our own goods and services. For example, export of pharmaceutical products to different countries expanding the client list.

·       Foreign investment is also one of the major positive impacts. Many companies have invested in Pakistan for example in CPEC.

·       Easy access to new technologies and advancements and grow at a rapid pace.

 


 

Negative impacts of Globalization

·       Complexity in operations while expanding for example supply chain operations. There are many issues which include logistics issues, distribution issue, material management issue etc.

·       Legal difficulties can be tough to deal with. For example, in the pharmaceutical industry, we must observe the laws and regulations of the drug regulatory authority in the nation where we are exporting. Import rules, as well as other product registration and documentation, are in accordance with their standards and protocols.

·       Globalization provides higher value to the end user or consumer in terms of product and service quality. In order to retain clients and maintain a positive brand image, different firms compete fiercely. As a result, superior quality is delivered.

·       Risk is associated every thing and while expanding globally there is a lot of risk. Companies which do not have agile supply chain can struggle in case of any adverse event like pandemic covid-19 exposed supply chain of many organizations around the globe.

·       Data analytics and gathering of information is a complex and difficult task. For example, import managers use Market Watch software for Realtime information.

·       Globalization increases competition as there are many other companies already operating with different resources and strategies.





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