1.What is globalization, and what are some of the traditional international trade theories that support the concept of globalization?Globalization is the transformation of a local economic market moving it into the global market. This process includes people from every nation of the world functioning together to bring about a single market. Globalization includes a combination of economic, socio-culture, technology and political forces.
"Globalization effects the environment, cultural and political aspects of all the nations involved. Globalization can lead to huge increases in the economic development and prosperity of a growing nation" (Carnegie Endowment for International Peace, 2007).
2.List the major drivers of globalization and give three examples of each.
The major drivers of globalization include the lowering of barriers to trade and investment and technology and communication innovations. The lowering of barriers in trade enables companies to treat the world as their market. Companies operate and produce goods at the optimal location for that activity.
Countries are able to focus on their strengths instead of trying to produce everything in one place. Overcoming blocks such as foreign direct investments, high tariff and retaliating trade policies has lead to the opening of the world market.
Technology advancement in areas such as information processing, the internet (World Wide Web), communication and transportation is another major driver to globalization. Persons are able to communicate across the world because of development in fiber optics, satellites, wireless advancement and the internet. Improvements in shipping, rail and road ways and the development of commercial jet aircrafts makes it possible to be in another location in a shorter period of time.
3.Explain at least four effects of globalization that impact your community and organization.
Globalization has caused many communities and organizations to be impacted. Companies are able to outsource some of their functions to...