What is Globalization

Essay by mrbudziszUniversity, Bachelor'sA+, January 2005

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What is Globalization?

Globalization refers to the shift toward a more integrated and interdependent

World economy. Globalization has two main components: the globalization

Of markets and the globalization of production. (Pg.6 chapter 1).

List the major drivers of globalization. Give three examples of each.

Two macro factors seem to underlie the trend toward greater globalization. The first is the decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II. The second factor is technological change, particularly the dramatic developments in recent years in communication, information processing, and transportation technologies.

(Pg.8 Chapter1).

Examples in the decline in barriers to see the free flow of goods, services and capital.

The Number of free trade agreements signed between the United States and other Countries Allowing free Trade. For example the North American Free Trade Agreement (NAFTA), that includes all North American Countries.

Other major free trade agreements are held with China, Japan and Russia. These free trade agreements allow the flow of goods and services to reach all parts of the World, which in turn generates a Global economy.

The technological change is the power behind globalization in my opinion. The technological advancements made over the last 20 years have made globalization possible. Communication is now possible throughout the World. Banks can now wire money to pay for the transfer of goods and services. Information processing can now be done in days instead of months.

Explain at least four effects of globalization that impact your community and your organization.

One effect of globalization that impacts my organization and community is the relocation of jobs. Since I am employed by a global company there is always the possibility that jobs may be relocated to other less developed countries where labor is cheaper.