Hauffman Trucking Company Essay Example | Topics and Well Written Essays - 250 words

Hauffman Trucking Company - Essay Examplehe choice of the location is important since, a prime location enables the company reap benefits that would have essentially cost the company lots of money to acquire. For example, access to new and efficient technological innovations (Caprio, 2013).Globalization encourages mergers between organizations thus creating bigger companies. This increases the revenue and the value of the organization. The organization gains a larger market share, a fall in expenses and experiences a decrease in expenses. The prime negative effect of globalization is outsourcing. This is the hiring of new rung from outside the organization to the subsidiary companies set up in different countries. This increases the organizations ingestion in catering for the increased number of employees.There are five main factors contributing to put back rate risks. They include the expectations of the economic emergence. An economy responds to a growing population in differ ent ways. If the increase occurs too rapidly, the cost of living will increase due to the unnecessary wages paid. With higher growth comes higher inflation and this increases the reciprocation rates. On the other hand, deflation, which normally occurs during recession, is a sign of economic stagnation. This lowers the exchange rates. Other factors include, trade balance, central bank actions, employment outlooks and interest rates (Wagner,