Topics: Economics, World Bank Group, World Bank Pages: 7 (2209 words) Published: December 13, 2012

'Globalization' is a slogan of key ideas for business theory and practice. It is often confusing; sometime used as a way of describing the spread and connectedness of production, communication and technologies across the world; the overlapping of economic and cultural activity; rather is also used to the efforts of the International Monetary Fund (IMF), the World Bank and others to create a global free market for goods and services; politically and potentially, damaging for a lot of poorer nations - is really a means to exploit the larger process; in the sense of connectivity in economic and cultural life across the world, has been growing for centuries. However, many believe the current situation is of a fundamentally different order to what has gone before. The speed of communication and exchange, the complexity and size of the networks involved, and the sheer volume of trade, interaction and risk give what we now label as 'globalization' a peculiar force.( 1) With increased economic interconnection, some argue, multinational corporations. which rose the globalization of the 'brands' like Coca Cola, Nike and Sony. Anthony Giddens (1990: 64) has described globalization as 'the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa'. This involves a change in the way we understand geography and experience localness. As well as offering opportunity it brings with considerable risks linked, for example, to technological change. . Globalization, thus, has powerful economic, political, cultural and social dimensions. STEP Analysis is a useful tool for understanding the “big picture” of the environment in which Nike operate, and the opportunities and threats that lie within it. By understanding the environment, we can take advantage of the opportunities and minimize the threats. * Society.; Relevant factors from Nike's perspective might include: * The values and expectations of (a particular) society. * Its social divisions, particularly in terms of the distribution of wealth. * Its degree of freedom, especially as regards freedom of information. * The level of education would be important both for the recruitment of suitable local staff (if the company has an office there) and also because literacy is a basic requirement for computer-usage. * Technological Factors.

* The changing nature of technology in the world at any given time. * Preparedness of local rivals.
* Crucially, the national/international infrastructure of cables, telephone lines, etc. * Economic Factors.
* Economic growth (nationally and internationally).
* Projected stability of the economic situation.
* Public/market confidence in the ‘ sector’
* Consumer confidence (for the purchase of expensive computers!) * Politics/Law.
* The Federal Communications Commission, of course, and its analogues elsewhere in the world. * Local laws such as the companies act in the UK and laws such as the law of contracts, which apply to all businesses regardless of type. * Local states’ desire to control and regulate their telecommunications. * International treaties.

Globalization and advantages : the outsoursing
Productivity and competitiveness are a function of knowledge generation and information processing; firms and territories are organized in networks of production, management and distribution; the core economic activities are global. (Castells 2001: 52). Outsourcing is an arrangement in which one company provides services for another company that could also be or usually have been provided in-house Nike is one of the leading athletic footwear companies. Nike has hundreds of factories and various subcontractors it uses to design and manufacture its products. Nike has had a dramatic increase in revenue in the last two decades. In 1985 the U.S. spent $5...
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