Local businesses must adapt and innovate to stay competitive.
Impact on Local Economies Increased Competition Globalization has led to increased competition in local economies as businesses from around the world can now easily enter new markets. Local businesses must adapt and innovate to stay competitive. Outsourcing of Jobs Globalization has resulted in the outsourcing of jobs to countries with lower labor costs. This can have a negative impact on local economies, as it leads to job losses and reduced wages for local workers. Growth of Multinational Corporations Globalization has allowed multinational corporations to expand their operations into new markets. While this can bring economic benefits such as increased investment and job creation, it can also lead to the concentration of wealth and power in the hands of a few large corporations.