Advantage Of Globalization

1281 Words6 Pages
The world is developing day after day especially through globalization. Globalization made the world one big country in which the interaction between nations became easier. “Globalization affects all economic actors in all industries and parts of the world; hence, business people all around the world are equally interested in how to exploit the benefits and how to avoid the threats it brings”1. Countries became more connected to each other through globalization which gave them the opportunity to create the concept of new economy. A new developed world means a new economy. In the new economy firms had innovated new technologies that helped people in making their lives easier. Computers, internet, smart phones, etc. are used by people in all…show more content…
Moreover, mobiles are used as a marketing process. It became business equipment that provides firms and people with success or fail. They use mobiles to buy and sell products. Furthermore, applications like OXL and others are being developed for this purpose. Mobile sector in Lebanon is a competitive market. “New economy is believed to move markets closer to perfect competition-demand side gives perfect information for products and services, while supply side removes economies of scale and reduces entry/exit costs”2. In the Lebanese mobile market, firms and consumers are price takers; if the price of the phone rises, the demand decreases. The relationship between price and demand is integrated; i.e., when price decrease the demand increase. If a firm raises the price of a phone and another firm has the same phone with cheaper price, customers will definitely buy the cheaper and the firm will loses its sales to rivals. For example, Star communication sells Samsung J7 at 220$ while other shop in the same street buy it at 240$. It is the same brand with the higher price. Therefore, people demand is higher at Star Communication. It…show more content…
New economy was created. The development in new economy meant the use of technology and internet. People are using technologies in their daily lives. Lebanese people are affected highly by the technological tsunami that hit the world. Lebanese are more related to their mobiles and internet day after day. “ The internet as a marketing channel became one of the most important tools for communication between the seller and consumer”5. Every now and then a new mobile with new features is released and because of the media people are attracted to buy it even when they already have a mobile. It became an obsession in carrying new smart phones especially if it is an iPhone or Samsung mobile. The mobile market is a competitive market where it is easy to enter and exit. The demand decreases when a firm raises the products prices, the demand decreases. There is always a substitute in this sector; either another phone from the same brand or from another brand or the same phone but from cheaper store. Lebanese people are consuming smart phones in high amounts. In Lebanon, prices of phones are affected with its original prices from the suppliers and the high taxes the traders pay. The demand of mobile phones as the global demand increases every year especially in the development of mobile sectors. In order to increase the demand more, the new phones should be with lower prices and the firms like Samsung and Apple should protect their
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