Globalization MGT 448/ Global Business Strategies February 24, 2005 Globalization is the term given to the phenomenon that the entire world seems to be going through. This change includes the fact that products are being produced in certain locations from parts manufactured in places all over the world, information and money being exchanged and having a constant rapid flow, and people all over the world being connected in almost every way possible (web).
The main drivers of globalization can be listed as both the decline of trade and investments, and the role technology plays in change. The decline of trade and investments can include international trade, foreign direct investments (FDI), and the restrictions being removed from FDI by many countries. Technology plays a significant role in driving globalization as well. Some examples of this include the internet and World Wide Web, transportation, and communication (Hill, 2002, p.
Globalization effects just about everything and everyone. Locally, globalization has impacted technology and helped our community become more up-to-date with internet usage and communications. An increase in foreign residents has become the norm in our local area, and local businesses have begun to outsource jobs to remain competitive. Local businesses including my organization have also seen an increase in the availability of products to purchase from all over the world, which increases the opportunity to find better prices.
According to J. H. Mittel man, "globalization means a historical transformation in economy and cultural diversity. Globalization is the idea of making the world act like a huge country. Globalization affects this world and the people in this world in many ways. Globalization affects the economy status of a country. It has indeed weakened the position of poor countries and exposed poor people to ...
A major bloc to regional trade is known as the Free Trade Area of the Americas or (FTAA) (web).
Reference sHill, C. W. L.
International Business Competing in the Global Marketplace, Fourth Edition. New York: New York (web).
Accessed February 20, 2005.