Q3. Critically evaluate the idea that globalization has led to a change in the demographics of the world economy.

Critically evaluate the idea that globalization has led to a change in the demographics of the world economy.

Globalization is a process through which people and organizations are affected by similar factors that prevail across the world and through which information technology assist in this integration. Globalization opens up the economy as people from all parts of the world can interact and participate in the international market. The process of globalization has particularly been enhanced by a free flow of technology from the developed regions to other parts. Globalization has affected the demographics of the world economy in many ways. This paper will discuss the various ways in which the effects has been felt.

One of the means is the competitive advantage consideration. The products produced and presented to the consumers must be of high quality for the firm to gain a competitive advantage. Competitive advantage is the capability of a company to be the most preferred by the customers and other stakeholders to transact and interact with it in one way or another. The products and services produced must, therefore, be competitive globally for the company to remain in business. Due to globalization, the business activities must be aligned to those acceptable in the global market. The process of becomes expensive but at the end of the day, an organization can offer its products in the world market. The standards through which products are developed and the minimum qualification of employees must also be for an organization to be termed as compliant to the global standards.

Globalization has enabled people to access information from different parts of the globe. Individuals equipped with accurate information concerning the quality of goods offered in the market can choose the company to transact with. Most organization in the attempts to reach more customers have improved their marketing strategies to inform the clients of the superiority of their goods. Globalization, therefore, determines the whole process of value chain if the company concerned is aiming at international consumers. Organizations offering services have also integrated various measures for meeting the requirements of international market. The effect of globalization on the supply chain is increasing as people are free to order goods and services from the different part of the world. Buyers emphasize on the price and quality of the products. As a result, they will be will to purchase from the supplier located far away if the products meet the desired quality and are priced competitively. Currently, most organizations are conducting research on their value chain to match it with the requirements of the market for them to remain competitive.

Additionally, the level of technology is ever changing leading to the development of more sophisticated gadgets and communication platform. The improvement of technology has to a large extent improved production methods to more efficient ones. The modern production techniques help in the process improving the quality of goods and services produced. Effectiveness in production means that the costs of operations are significantly reduced resulting in the realization of more profits by companies. The processing of producing quality products is enhanced. The quality products enable the company to meet the requirements of customers globally.

Lastly, Global politics have been a major player in influencing how organizations operate in different regions. Governments of various states develop different rules and regulations that control the production process or even the quality of goods that reach the market. The emergence of economic blocs has an impact of harmonizing different operations to produce standard products. The elimination of trade barrier in these economic blocs facilitates free trading activities. The expansion of the market through such alliance forces organizations to modernize its processes and operates more efficiently to meet the need of these larger markets. The value chain of these organization must, therefore, be designed in a manner that takes care of all market for it to maximize its sales.