“Globalization” has long been a buzzword, and has only been gaining steam in today’s increasingly inter-connected world. It is essentially used to refer to growing trade and investment, especially with international businesses and economic integration abroad.
One of the greatest effects of globalization has been the rise of multinational companies. These businesses are typically headquartered in one country, but have a presence in other regions of the world. Manufacturers who have a global presence usually have certain steps of production carried out in various countries, where advantages can be leveraged.
With globalization only increasing, and more and more companies having a presence in numerous countries, it is becoming difficult to ignore the great benefits of a multinational enterprise. These are:
1. Standardization of Quality
Multinational manufacturers can deliver consistent quality to today’s highest standards, independent of the region in which they manufacture, while maximizing the economic benefits of those regions.
Standardization of quality is just the beginning…
Multinational companies have the knowledge and understanding of trade regulations, trade law, and tariff restrictions that can help minimize exposure to risk and hidden costs. Multinational companies working with multiple manufacturing regions are accustomed to dealing with local economic, environmental, social and natural resource issues on a regular basis.
“You can’t buy it there, you have to make it there”
2. Cost Benefits All Around
Manufacturers with a presence in multiple economic regions can offer customers attractive prices. Cost advantages with regards to labor, raw materials, subsidies, logistics, and energy will present themselves when evaluating various cost models where different manufacturing regions can be explored. Multinational companies can provide a single point of contact to maintain local customer service that speaks the same language in the same time zone, in turn saving time and money.
3. Boost to Economies
International companies need international suppliers in order to be globally competitive. Suppliers that understand how to provide and deliver value to these customers will in turn strengthen both their customer’s competitiveness as well as their own businesses. These companies will enjoy success beyond what their local economies can generate reducing the risk of doing business in only one region with only one economy.
Learn More about Bracalente’s Multinational Benefits
As a multinational company with American headquarters and offices in Asian countries abroad, Bracalente can offer customers with a global team at their disposal. Our products in the aerospace, automotive, electronics, green energy, and agricultural industries features worldwide, competitive quality standards, and affordable prices that promote safety and efficiency in every facility.