Globalization

Running head: GLOBALIZATION

Globalization

University of Phoenix

MGT/448

September 23, 2012

Globalization

Globalization pertains to the conversion toward a more incorporated and interdependent business world. Globalization has many aspects including the globalization of markets and globalization of production (Hill,2009)

There are various meaning of globalization of inspirating beyond the need of globalizations process as well as the world of technology will assist in the requirement of globalization. Communities as well as companies also are influence by globalization and smaller countries take advantage of the generosity of the members in the largest market throughout the world. International Trade Theory deals with different models of international trade that have been developed to explain the diverse ideas of exchange of goods and services across the global boundaries. International trade involves across border exchange and this increases the cost of trading. Factors like tariffs, restrictions, time costs and costs related with legal systems of the countries involved in trade make the international trade a costly affair; whereas the extent of restrictions and legal hassles are considerably low in case of domestic trade. (http://www.economywatch.com)

The drivers of globalization may be characterized as a reduction in trade as well as investment, and the part of technological modification. The reduction in trade as well as investment can include global trade, foreign direct investment (FDI) and the removing of restrictions on foreign direct investment in a lot of countries. Technology performs an important part in promoting globalization also as we can easily see in the world of net or better known as the world wide web. Additional other drivers are transportation/ logistics as well as communication advantages, (Hill, 2009)

The effects of globalization in my community would be gas prices and transportation. With our economy being down...