GlobalizationIntroductionAn extremely controversial issue, globalization has been the center of much debate and has raised many questions. Some view globalizations process as beneficial, while others argue that it produces unfavorable results and consequences.
GlobalizationGlobalization specifically includes business aspects such as trade, capital movement, spread of knowledge, and movement of people. Through use of trade and financial flow, globalization can be easily summed up as the integration of economies worldwide; furthermore, globalization includes international movement of technological knowledge and labor. As a result or rather in collaboration, there is a greater sense and existence of culture and politics.
In the broader scope, globalization promotes effectiveness by utilizing each market and nation's specialization allowing a nations people and economies to focus on what they do best. Globalization gives opportunity to each nation to access each others markets as well as to capital flow, technology, imports, exports, politics, and culture.
Globalization is a principal symbol of economic, cultural and political life in the 21st century.
Due to the complexity of the issue, there is no precise definition of globalization. For the purpose of this paper globalization is simply the process by which companies expanded without recognition of national boarders. International organizations such as Coca Cola, Exxon, British Petroleum, Disney, McDonald's, Sony, and IBM, symbolize such a process.
Globalization Drivers"The drivers of globalization are a combination of many factors which have forced businesses to look outside their home markets for growth opportunities in new markets, and very often to gain economies-of-scale and to diversify their risk/reward balance" (Roll, 2003). Governments, markets and costs are factors that drive companies to expand business to beyond national boarders and look globally to enhance shareholder wealth.
Government DriversDuring the past 20 years developing governments have adopted a free-market economic system. This economic change had helped increase productivity...