We live in a time of worldwide change. What happens in one part of the world impacts people on the other side of the world. People around the world are influenced by common developments.
The term Globalization is used to describe this phenomenon. According to Harris, the term is being used in a variety of contexts. In a very broad context, media use it almost daily to refer to a wide variety of political, sociological, eviromental, and economic change.
The business world, however, uses this term in a much narrower context to refer to production, distribution, and marketing of goods and services at an international level. Everyone is impacted by the continuing increase in Globalization in a variety of ways. The types of food we eat, the kinds of clothes we wear, the variety of technologies that we utilize, the modes of transportation that are available to us, and the types of jobs we pursue are directly linked to Globalization.
Globalization is changing the world we live in.
Causes of Globalization
Harris indicates there are three main factors contributing to globalization.
The factors include:
ÃÂ· The reduction in trade and investment barriers to the post- world war II period
ÃÂ· The rapid growth and increase in the size of developing countries' economies
ÃÂ· Changes in technology
Originally each nation established its own rules of governing forein trade. Regulations and tariffs were often the outcome, leading to the tariff wars of the 1930's.
Nations have found it convienent . . . to agree to rules that limit there own freedom of action in trade matters, and generally work toward the removal of artificial and often arbitrary barriers to trade.
Many trade agreements exist in the world today. Of those agreements (general agreement on tarrifs and trade [GATT], the...