Globalisation

Globalization is good for both business and society. Discuss.

Intro and definition

Globalization refers to the shift toward a more integrated and interdependent world economy. It can also mean exchange of goods, services, ideas, and technology across national boundaries. The integration of markets, nation states and technologies in a way that is enabling individual, corporations and nation states to reach around the world further, faster, deeper and cheaper than ever before. Globalization has two facets: the globalization of markets and globalization of production.

Define affected areas

The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace in many industries. In the global market, the trade barriers were being falling to make it easier to sell internationally and the testes and preferences of consumers are converging on some global norm. Moreover, the globalization of products refers to how business helps create the global market by offering the same basic products worldwide.

Drivers of globalization

There are two macro factors underlie the trend toward greater globalization. They are government policy and technology. The decline in barriers to the free flows of goods, services, and capital that have occurred since the end of World War 2 and due to the development of technology.

Technological change has made the globalization of markets a reality. Important advances have occurred in: microprocessors and telecommunications, the Internet and World Wide Web and transportation technology. Lower transportation costs that enable firms to disperse production to economical geographically separate locations. Lower information processing and communication costs that enable firms to create and manage globally dispersed production system. Low cost global communications networks help create electronic global marketplace and low cost transportation help create global markets....