Question: What is the impact of globalization on companies?

Sample Answer (The AREA technique):

Answer: Globalization has both positive and negative impacts on companies, including increased competition, access to new markets, and cultural diversity.

Reason: Globalization refers to the increasing interconnectedness of economies and cultures around the world, and companies have had to adapt to the changes that come with this process. Companies can benefit from globalization by gaining access to new markets, resources, and talent, but it also comes with increased competition, cultural differences, and regulatory challenges.

Example: For example, a multinational company that operates in multiple countries can benefit from economies of scale, access to different markets, and diversity in talent and ideas. However, the company may also face challenges related to cultural differences, political instability, and regulatory compliance.

Alternative: However, globalization can also lead to negative impacts such as the exploitation of workers, environmental degradation, and loss of cultural identity.