Since the financial crisis striking the world economy in 2007, protectionism has become a growth industry, with numerous nations-including the US-opting for various direct and indirect barriers to trade. Many fear that a new world of de- globalization will loom on the horizon. Do you think such fear is redundant? What kind of impacts this de-globalization trend will make on consumers and companies around the world? 1. Discuss the opportunities and threats globalization poses for companies and governments.
Week 1 Globalization
1. What is Globalization?
Globalization refers to the shift toward a more integrated and interdependent world economy. The flows of information, goods, service, capital and people. Globalization has several facets, including the globalization of markets and the globalization of production.
Globalization of markets
Refers to the merging of historically distinct and separate national markets into one huge global marketplace. Eg, •McDonald’s menu: –in India they can't use Beef-Tallow to fry the fries and burger cutlets. (due to religious beliefs - cows are sacred to Hindus) –no bacon in the middle east (pork is abolished by Islam)
–in Germany, you can have a beer with your big Mac!
–Breakfast serve started in Asia and spread to Europe
Globalization of Production
The globalization of production refers to the sourcing of goods and service from locations around the globe to take advantage of national differences in the cost and quantity of factors of production (such as labor, energy,...