This is an evaluation based upon a global questionnaire. This evaluation will provide some comprehensive responses about globalization. It will define globalization and describe some of the traditional international trade theories that support the concept of globalization. This evaluation will also discuss some major drivers of globalization and give three examples of each major driver. Lastly, this evaluation will explain at least four effects of globalization that affect your community and your organization. Globalization Defined
As defined in the book International Business: Competing in the Global Marketplace globalization is the trend away from distinct national economic units and toward one huge global market. Globalization is a process of interaction and integration between the communities, companies, and governments of different nations. It is also a development driven by international trade and investment and aided by information technology. The globalization process has on the culture, political systems, economic development, environment, and prosperity, and on human physical well-being in societies around the world. International Trade Theories
An international trade theory is a measure to address problems in a country with a weak international economy, high unemployment rates amongst the communities and price inflation. Some types of international trade theories are International Product Life-Cycle Theory, Mercantilism, and Absolute Advantage. International Product Life-Cycle Theory is the theory that shows how a country's export can become its import through different stages. Those different stages are New Product stage, Maturing Product stage and Standardized Product stage. The next theory is the Mercantilism, which is the theory that believes that a government can improve economic well being of the country by increasing exports and reducing imports. Absolute Advantage is the theory that means a country has total...
References: Hill, C. W. (2007). International business : Competing in the Global Marketplace. McGraw-Hill/Irwin.
Nash, C. (2008, April 22). The Positive Effects of Globalization. Retrieved January 24, 2009, from http://ezinearticles.com/?The-Positive-Effects-of-Globalization&id=1126427
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