Globalization Questionnaire
Globalization Questionnaire Paper
Leon Hildreth
University of Phoenix
MGT 448
Global Business Strategies
Jeremy Smith
September, 19 2010
Globalization is the expansion of corporations and its entities from the originating country into the international market. Corporations, who manufacture, sell or buy from two or more countries, are considered to be global corporations. Many corporations that only sell to or buy from other countries, are not very good examples of expansion globalization. Corporations that have investment, manufacturing, or other divisions of the company in another country is definitely an example of expansion globalization. Some of the major drivers that affect globalization are Costs: Cost of materials, labor, doing business within the legal and tax arenas. Markets: New markets to open and sell to, markets that are expanding (China, Africa, South America), Products meet needs of markets. Competition: Places that offer little competition (expanding economies, new economic markets), less money to meet sales goals because of competitive limits
Work force: better trained foreign workers, skills sets that may be different, pay less for unskilled labor. Political Organizations: Political stability in areas such as South America, governments open to sale of natural resources, governments willing to work with companies regionalizing: countries creating regional trade agreements, companies working with several countries in a single region is easier, bigger regional organizations.
Technology innovations: cell phones, computers and Internet access, immediate contacts by phone and video, communications improved. Technology allows speed in communication, delivery, and speed of product life cycles. It also lowers the cost of market entry in some markets (reduces the overhead cost for infrastructure). With globalization, there is meeting of tastes, brands, products and consumers who may be limited by distance The four effects of
Leon Hildreth
University of Phoenix
MGT 448
Global Business Strategies
Jeremy Smith
September, 19 2010
Globalization is the expansion of corporations and its entities from the originating country into the international market. Corporations, who manufacture, sell or buy from two or more countries, are considered to be global corporations. Many corporations that only sell to or buy from other countries, are not very good examples of expansion globalization. Corporations that have investment, manufacturing, or other divisions of the company in another country is definitely an example of expansion globalization. Some of the major drivers that affect globalization are Costs: Cost of materials, labor, doing business within the legal and tax arenas. Markets: New markets to open and sell to, markets that are expanding (China, Africa, South America), Products meet needs of markets. Competition: Places that offer little competition (expanding economies, new economic markets), less money to meet sales goals because of competitive limits
Work force: better trained foreign workers, skills sets that may be different, pay less for unskilled labor. Political Organizations: Political stability in areas such as South America, governments open to sale of natural resources, governments willing to work with companies regionalizing: countries creating regional trade agreements, companies working with several countries in a single region is easier, bigger regional organizations.
Technology innovations: cell phones, computers and Internet access, immediate contacts by phone and video, communications improved. Technology allows speed in communication, delivery, and speed of product life cycles. It also lowers the cost of market entry in some markets (reduces the overhead cost for infrastructure). With globalization, there is meeting of tastes, brands, products and consumers who may be limited by distance The four effects of
References: www.bangkoklogistics.com/international.../Traditional-International-Trade-Theories.html www.commercialdiplomacy.org/.../m_econ_intheory1.htm www.globalization101.org/.../Global_Business_Strategies_eldridge.doc