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Q-1.Compare and contrast, “globalization of production and globalization of markets”. Discuss how understanding of “globalization of...

Q-1.Compare and contrast, “globalization of production and globalization of markets”. Discuss how understanding of “globalization of production and globalization of markets” helps the managers in their decisions.

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Globalization of production is a part of globalization in which the different resources and raw materials for production are sourced from various countries across the globe, so as to leverage upon the factor of cost effectiveness. Some of the factors which facilitate globalization of production are:

· Availability of good quality raw material in foreign land

· Availability of skilled labor at cheaper rates in different countries

· To develop a dedicated network for the company across the world

Globalization of markets, on the other hand, is another eminent component of globalization in which a company presents its offerings to different markets of the world and treats them as single market. This facilitates the overall branding and coverage of the company across the globe. Companies conducting mass production of products can leverage on globalization of markets so as to enhance their overall profitability.

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