The expansion of the global market has provided great opportunities for businesses. Developments in technology, communications and transportation have enabled businesses to service customers worldwide 24 hours a day, 7 days a week and 365 days each year. Along with this ability to attract new customers, in the global market, comes the added competition from foreign companies. Global competition forces companies to be more efficient and productive and stay current of technological changes, or face being left behind. Ahearn cites the Institute for International Economics, estimating a gain of between $500 million and $1 trillion each year, to the US economy, from the integration of the global economy. He goes on to state that not all businesses benefit equally from this increase. "Substantial economic losses are borne by specific groups" (Ahearn,2008). The increased competition can create anxiety. Workers from low wage countries can erode the bargaining power of American workers. American companies trying to cut expenses have already eliminated or decreased benefits to workers. In addition jobs, manufacturing processes as well as supplies are increasingly outsourced to other countries, where they can be found cheaper. Businesses and workers fear that losses will exceed benefits, resulting in a stagnant or decreasing standard of living. Small businesses need to find a niche, stay ahead of the technology curve, or find some competitive edge to thrive in the global economy.
Ahearn, Raymund J. "Globalization, worker insecurity, and policy approaches." Congressional Research Service(CRS) Reports and Issue Briefs. 2008. Academic OneFile. Web. 25 Aug 2011.
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