Globalization is defined as the “trend away from distinct national economic units towards one huge global market”. This definition goes further into detail by saying that globalization occurs when shifts from self-contained entities (that are isolated from others by barriers) change their economy in order to decline barriers of trade and investments. The world is able to become smaller and increasingly globalized through the process of moving towards a more “integrated and interdependent world economy”. Globalization of markets happens when markets that were historically separate from others begin to merge together into one. Business systems, regulation of governments, and cultural differences have started to decline drastically. National economies have become integrated into one global system. The trend towards one economy has seen many opportunities for businesses around the world. They are able to expand their consumer market segments and lower costs of producing their products where cheaper labor exists. Businesses who transform their economy to a free market have allowed themselves the possibility to expand their enterprises internationally, increase competition, and accept foreign investments. Advances in technology and transportation systems have been major contributing factors to the era of globalization. Changes in regulation of trade and political systems have greatly impacted businesses all over the globe. Competition has dramatically increased for companies who globalize their products and, many businesses have been confronted with major obstacles to overcome. Companies have begun to recognize the need to change their strategic paths in order to continue to make profit.
In my perceptive I think of globalization as cultures and businesses coming together in order to make more efficient products and allow for more innovation. It allows people from all over the globe access to the same products and services and thereby converges tastes, preferences,...
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