Answer / Satya Nand Mishra

Global competition affects factors of production as follows: (1) Labor - Companies often seek lower labor costs, leading to outsourcing or offshoring. (2) Land and natural resources - Globalization increases the demand for raw materials, potentially driving up prices or depleting finite resources. (3) Capital - In a global market, businesses have access to various funding options and must make strategic decisions about investment in technology, infrastructure, and research and development. As for managing people in a globally competitive environment, it's essential to foster cultural sensitivity, adaptability, and global teamwork among employees.

How are the various factors of production affected by global competition? Do we manage people any dfferently in a globally competitive environment?

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