May 31, 2012
Globalization is known as the trend toward becoming more united and symbiotic world economy. It is the trend of becoming one large global marketplace. The globalization of markets is one international trade theory, to get rid of the barriers of differences and connect internationally. Some companies global include Coca-Cola drinks, Sony PlayStation, McDonald’s, and Starbucks (Hill, 2009). Many global markets are confronted with competitions in nations. As each company joins the globalization, they all bring assets, such as their products, marketing strategies, and operating strategies. The assets in each national help take away the diversity and create the uniformity. The globalization of production is the second international trade theory. This refers to the way the goods and services are sourced from locations around the world and allows the company to use the cost and quality in each nation as an advantage. Using this theory it allows the company to compete with other companies more effectively (Hill, 2009).
There are two major drivers of globalization. The first one is the decline in barriers to the free flow of goods, services, and capital that has been going on since the end of the Second World War. Examples of this are the North American Free Trade Agreement also known as the NAFTA, the Foreign Direct Investment, which protects one for trade between two countries, and the increase of global sales because it is getting more expensive to export goods from one country to another. The second major driver of globalization is the technology advancement. Examples of this are the Internet, transportation, and the microprocessor (Hill, 2009).
Globalization has become a big factor in the community and the...