How does globalization affect businesses?

Globalization significantly enhances competition and market access for businesses. By integrating economies and markets around the world, globalization allows companies to reach customers beyond their local or national boundaries. This expanded access to diverse markets means businesses can tap into a larger customer base, driving growth and revenue opportunities.

Furthermore, increased competition arises as businesses face rivals from different countries, which often leads to innovation and improved products or services. Companies must continuously improve their offerings and efficiency to stay competitive in a global environment. This dynamic not only pushes firms to enhance their capabilities but also benefits consumers through more choices and potentially lower prices, given the increased competition.

In contrast, other options suggest limitations or reductions—in competition, market growth, or technological importance—which do not align with the fundamental characteristics of globalization that foster interconnectedness and wider horizons for businesses.