What impact do global markets have on business?

Global markets significantly impact businesses by providing opportunities to access a wider range of customers and potential sales, which is a key benefit of globalization. When companies expand into global markets, they are not only able to sell their products and services to a larger audience but also tap into diverse consumer preferences, trends, and demands that may not be present in their local markets. This expansion enhances revenue potential but also introduces the challenge of increased competition, as businesses must now contend with both local and international players in the marketplace.

Understanding this dynamic is crucial for businesses as it informs strategic decisions related to marketing, product development, and pricing in order to remain competitive on a global scale. This answer captures the essence of how globalization shapes the business landscape by both presenting opportunities and demanding heightened competitive strategies.