Drawbacks of Globalisation for businesses in Northern Ireland
Updated: Oct 25, 2020
There are many advantages to globalisation for businesses in Northern Ireland such as having the freedom to trade with other businesses and customers all around the world. However, there are drawbacks which businesses in Northern Ireland may encounter as a result of globalisation. Some of these include:
competition - when a business enters the international market, it will be faced with competition because there are so many more businesses trying to sell similar products.
language barriers – language barriers are a major drawback and businesses have to ensure that some of their members of staff are capable of speaking, writing and translating the language of the country in which trading is taking place, particularly if they need to negotiate contracts or agree the price of goods being bought or sold.
expense - a business may need to employ extra workers in order to ensure that the business is fully equipped to cope with increased demands for goods and a business may find this financially difficult.
constant research - a business may need to constantly research appropriate transporting arrangements, that workers' human rights in other countries are being adhered to and that the production of goods is being carried out responsibly.
different currencies - currency exchange rate fluctuations may have an impact on the price of
goods/services, sometimes making items more expensive to purchase depending on the exchange rates between currencies.
different ways of trading - businesses need to be familiar with various types of
documentations required for trading and this may prove cumbersome and time consuming for businesses.
Loss of skilled workers - Skilled employees may leave Northern Ireland in order to take up employment abroad, leaving Northern Ireland with fewer skilled workers that are useful for businesses to employ.