How to Make Money in Globalization
As individual national economies gradually merge into broader regional economies, a trend toward increasing globalization currently prevails.This increasing movement toward larger and larger trade blocs is especially notable in regions such as Europe, Asia and the Americas.
As a result, many people are left wondering how they can make money in globalization and profit from this ongoing evolution towards a truly global marketplace.
Accessing a Global Market for Products and Services
One of the greatest benefits of globalization is that businesses and individuals can now tap into the worldwide market for goods and services that has been gradually building on the Internet since the early 1990's.Having easy access to this much greater Internet marketplace helps increase competition and lower prices. It also permits businesses offering a niche product to reach a much wider audience than would ordinarily be available in their physical locale.
Exploiting Import/Export Opportunities
People and companies participating in the import/export business have for many years attempted to profit by purchasing cheap goods in one country and then selling them at higher prices in another country.The trend toward globalization accelerates the awareness of prices in foreign markets. As a result, the chances of identifying profitable import/export opportunities also tend to increase.
Outsourcing to Lower Cost Labor Pools
Another way to make money in globalization involves exploiting the disparities among the costs associated with using similarly skilled labor pools located in different countries.For example, a U.S. based computer software company might outsource some of its programming requirements to coders based in India, where labor prices tend to be lower.
Furthermore, outsourcing manufacturing or customer service activities to low cost foreign labor pools has also become an increasingly popular way to save or make money in globalization. This trend looks likely to continue until the net cost advantages of using foreign labor no long exist.
