How globalization has provided benefits to the manufacturers?

Globalization is not a new concept in the current era. It is a term driven by international trade and foreign investment that views the entire world as a single market. Globalization is responsible for removing Wholesale Suppliers trade barriers between different countries and promoting free trade among them. It accelerates the growth of an economy and set it to economic development. The benefits provided by globalization can be viewed on all sectors of economy. Manufacturing sector which is known as the “backbone of an economy” is not an exception to this. Globalization has opened up new horizons for the Manufacturers, . Worldwide manufacturing sectors witnessed increased growth and unlimited benefits when they started global trade. These benefits can be witness well from the conditions of Indian economy. The globalization of Indian’s manufacturing sector started in 1990 and since then it has been on the top of the list for becoming an international market. Some of the advantages, which globalization has provided to manufacturers, are as follows: Reduction in manufacturing cost: Globalization has allowed manufacturers to reduce their cost of production to a great extent. Now the manufacturers located in America or some other high cost country can outsource their manufacturing tasks to the low cost countries like Philippines, china and India. If they have no skilled labor available in local markets, outsourcing to the country like India can save their large portion of cost. Manufacturers now enjoy easy access to the low cost raw materials and labor available in different countries only because of globalization. Broaden the range of opportunities: Globalization is not only about low cost manufacturing but has provided opportunity to the manufacturers to exploit opportunities and resources in other countries. Now if local market is saturated, manufacturers move to access opportunities in global markets. Catering the needs of a wide customer base ends up with rendering great profits for the wholesale manufacturers. rnDeclined dependence on home sales: Many manufacturers have reduced their dependence on home sales due to globalization. When local market situations don’t remain favorable, the business still survives. It is because, if local market is not rendering profit to manufacturers, there is a chance that global markets will. So, we can also say that globalization is a tool to survive effectively for the manufacturers. Diversification of investment: Globalization helps manufacturers avoid putting too many eggs in one basket. It lowers the risk of loss due to diversification benefits. Many worldwide manufacturers now operate globally with multiple product lines. If any particular product category is not a top selling item in local market, other can be a hot item in global markets. In this way the loss of one product line can be offset with the profit of other product lines which results in overall profitability of the business.