Exxon Mobil is a petrochemical company based in Texas, United States of America (Exxon Mobil, 2013). The company’s operations have been classified into three broad categories; upstream, downstream, and chemical sections. It was formed in 1999 following the merger of Exxon and Mobil oil companies (Exxon Mobil, 2013). The merger marked the beginning of a successful period. The success of the company can be attributed to a number of factors like increased asset base and improved efficiency. The merger was a strategic move by both companies to increase both assets and capital. Both companies had operations in several countries across the globe. The merger enabled the company to acquire an expansive operation area at a low cost. Increased capital base enabled the company to expand its operations without incurring significant costs. In addition, each partner entered the deal with a huge asset base. Operational efficiency is another factor that enabled the company to make significant profits. The primary focus of the company is to cut operational costs through introduction of efficient systems. The company uses technology to ease processes and to manage some operations. It also ensures that its supply chain is properly managed. It pulled out of the gas and fuel retail business to reduce its costs. Instead, it opted to form partnerships with independent retailers who would distribute its products. It also employs innovative marketing to increase its sales. The company, in conjunction with the retailers segmented the market. For instance, it has premium products meant for high end customers. It is also involved in oil exploration in some countries. This is a strategy to expand its area of operation. Demerits of Free Trade Free trade has had great impact on governments, businesses, and people. There are several positive effects of globalization. However, it also has a number of negative effects. Negative effects of free global trade have received little attention yet they have the potential to permanently alter peoples’ lives. The negative effects associated with globalization include loss of jobs and income, loss of national sovereignty, environmental degradation, exploitation of the poor, and disregard of labour laws and policies. Companies are constantly looking for ways to reduce their production costs. This has resulted in outsourcing of noncore operations to overseas companies (Hill & McKaig, 2012). The jobs are often outsourced to developing countries where labour is cheap. Outsourcing transfers jobs from one country to another. However, its effects are felt more in the country of origin. Loss of a job may alter the life of an individual. It reduces the individual’s purchasing power. Therefore, in the long run, outsourcing negatively affects the economy of a country. Influx of cheap foreign goods has a negative impact on the economy of a country. Globalization has encouraged the free movement of goods and people across borders. Local industries may lose markets to the foreign products. This has a negative effect on the economy. A decline in the amount of manufactured goods reduces government revenue. Free trade shifts economic power from governments and local agencies to international agencies like World Bank and IMF (Hill & McKaig, 2012).