Globalization Questionnaire Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½2Ã¯Â¿Â½
Running head: GLOBALIZATION QUESTIONNAIRE
Tiffany Nicole Jackson
University of Phoenix
Global Business Strategies
Steven G. Stromp
06 September 2007
Globalization, according to the textbook International Business: Competing in the Global Marketplace, refers to the shift toward a more integrated and interdependent world economy. It has different facets such as the globalization of markets and production. The globalization of markets is the merging of national markets into one global marketplace. The globalization of production is the sourcing of goods and services from around the globe. Some international trade theories that support the concept of globalization are Mercantilism, Comparative Advantage, Absolute Advantage, Heckscher-Ohlin, and New Trade theories.
Major drivers of globalization are declining trade and investment barriers and technological change. Examples of declining trade and investment barriers are the free flow of goods, services and capital. Examples of technological change are the developments of communication, information processing and transportation technology in recent years.
Changes in information processing include the development of microprocessors; changes in communication developments include the rapid growth of the internet, and the World Wide Web (www); changes in transportation technology include the development of commercial aircrafts and super-freighters and the introduction of containerization.
There are several effects of globalization that impact our community and organization, such as increasing the market share and profits or decreasing manufacturing costs. Another effect is the lost of employments in wealthy economies due to the falling barriers to international trade. Firms in those economies will move production to less wealthy economies to pay lower wages and not to deal with burdensome regulations. Another effect is the loss of national sovereignty. Supranational organizations can impose policies on democratic governments, thus undermining the sovereignty.
Major regional trading blocs are numerous across...