Globalization
As economies and cultures of the world become integrated into the global information age, the concept and reality of globalization becomes more complex and far-reaching. In today’s economy, things are ever changing. This is due to advances in communications, transportation, and computer technology. These innovations have given greater importance to a process the world has come to know as globalization. One thing is for sure, globalization is challenging for existing cultures throughout the world, and this is because they realize they need to turn to other cultures for support.
Globalization has two main components; globalization of markets and globalization of production. Globalization of markets refers to the merging of distinctly separate markets into one huge global marketplace, while globalization of production refers to the sourcing of goods and services from locations around the globe in an effort to take advantage of national differences in the cost and quality of production. Many businesses face market saturation and slow growth in domestic markets, which pushes them global, in an effort to remain competitive. Firms develop a competitive edge in global markets by possessing certain assets, abilities, and characteristics. Charles Hill, Author of “International Business” states “A fundamental shift is occurring in the world economy”. This is because countries are producing only what they do best and most efficiently.
Globalization is not a new concept any more, but it remains as intriguing as it was at its time of inception. Globalization has been part of human existence since the dawn of civilization. It is an inevitable phenomenon, and has helped bridge the gaps between the ...