Globalization has been the prominent buzz word of recent times from America to Europe and the UK to Japan to Nigeria in West Africa this is what is making the world go round and indeed flat. It is common to hear of today’s world economic system as being “globalisation”. Some describe the historical events leading up to today’s global free trade “inevitable”. The UK’S former Prime Minister Margaret Thatcher was famous for her TINA acronym and Gordon Brown the current PM encourages UK global trading by welcoming even more foreign investors. So, whether in the newspaper articles, politician speeches, or business leader press conferences the G-word appears to be the most important issue in contemporary society.
Many see the recent increase in cross border transaction as the new defining element of globalization. However, this has not been a new development. This process was well established in ancient history and even at the end of the nineteenth century, the percentage of cross border transaction worldwide was not considerably A quick background study of globalisation revealed that quite a lot of notable scholars believe that historically, there have been three great eras of globalisation critique have argued differently though.
Thomas .L. Friedman in his book the world is flat! Supported the thinking, that globalisation started from 1492- 1800 when Columbus set his sail to go around the world this open trade between the old world and the new world within also evident in this era is the planning by politician after the world war ll to break down borders hampering trade to increase prosperity and interdependence thereby decreasing the chances of future war.
Their work led to the Bretton Woods conference an agreement by the world leading politicians to lay down the framework of international commerce and finance, and the founding of international institutions intended to oversee the process of globalisation. They include, the World Bank established for reconstruction and development and the IMF international monetary funds.
The cost of trade, trade negotiation rounds where controlled originally under the guidance of the General Agreement on Tariffs and Trade (GATT) there has since been series of agreements, modifications to these agreement amongst nations to remove the restriction on free trade. This led to the establishment of the world trade organization. (WTO)
This involves then, not merely the geographical extension of economic activity across national boundaries but also and more importantly the function integration of such internationally dispersed activities. They reflect, therefore essentially qualitative changes in the ways economic activities are organised. This is what Peter Dicken in his book the global shift described as pure globalisation.
Analyzing globalisation has a process makes it possible to look at its different areas:
Globalisation of economies
Increasing interdependence of national economies throughout the world
Globalisation of market
The increasing homogenization of consumer taste and product preference in certain markets which can be seen in the popularity of global brands in certain market i.e. Cocacola.
Globalisation of industries
The increasing globalisation of productive process and the advent of fragmentation of production of goods, firms choose to concentrate or disperse value adding activities around the world according to the local advantages to be obtained
Globalisation of strategy
This describes the extent to which an international business configures and coordinates its strategy globally. This normally includes a global brand name and product with presence in major markets throughout the world, productive activities located so as to gain the best advantage and coordination of strategy and business activities throughout the world.(Kluyver 2003 et.al) the global organisation attempts to...