Effects Of Globalization On Financial Decisions

692 Words3 Pages
Effects of Globalization on Financial Decisions Finding a location internationally is a top priority of McBride Financial Services. To find a prime location, one of the major factors that can contribute to making a good financial decision is researching globalization. Globalization allows the company to compete internationally, attain new resources that can earn capital, and enter new markets that can attract new investors, which can help the company grow and expand. There are advantages to globalization: “Global competition encourages creativity and innovation and keeps prices for commodities/services in check, developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with development of these technologies” (Steif, 2010, para 12). If McBride Financial Services makes the decision to go public through an international IPO, they must consider many factors: does McBride Financial Services have a good business plan? Are they a large enough company to compete? Because of the services they provide, will they get enough investors to gain a strong IPO? When looking at location, McBride Financial Services must also understand the laws of the country in which they are setting up the new office. The disadvantages of globalization must also be considered: “Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities. Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade” (Steif, 2010, para 13). If McBride Financial Services were to use globalization by merging with another organization, there would be more benefits: they would increase their revenue and value, decrease their expenses because of the merger, gain

More about Effects Of Globalization On Financial Decisions

Open Document