What is globalization, and what are some of the traditional international trade theories that support the concept of globalization? Charles Hill (2009) states, “Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has several facets, including the globalization of markets and the globalization of production.” There are a selected number of traditional trade theories supporting globalization concepts. Various theories contain new trade and Porter’s theory, mercantilism, and life cycle. Numerous theories support globalization. Simply put globalization suggests that doing trade beyond nationwide perimeters. Globalization denotes a transfer to greater cohesive and reliant global economy (Hill, 2009). Globalization has various components that instill the globalization of various markets and production (Hill, 2009).
The globalization of markets denotes the amalgamation of generally distinctive nationwide markets to an enormous world arena (Hill, 2009). Globalization is not a requirement, although in most cases pays off in revenue and expansion. There are numerous advantages to create emergent indicators. Such as globalization in textbooks, is a country, such as Belgium, and France that benefited from global commerce with chocolate or fashion. Iceland has several resources they cannot produce; the illustration is citrus. Icelanders cannot yield oranges because the climate is not conducive for citrus growth too cold, however, they have an excess of seafood making it a beneficial commodity for Iceland to create trade agreements with countries that can and cannot produce or scarcity.
List the major drivers of globalization and give three examples of each. Various factors considered to be the major drivers of globalization include technology, economics, and political atmosphere or environment. The cultural environment and society are also key elements that drive globalization. According to Charles Hill (2009),”Portion of the conventional trade theories is supportive of the globalization concept being a benefit, comparative advantage, international product life cycle, Hecksher-Olin theory, and national competitive advantage-Porter’s diamond theory.” The two other elements that affect the global market are the decrease in limitations to the unrestricted flow of commodities, facilities, and resources beginning after the conclusion of World War II, and technological impact that emphasized the current extreme advancements in telecommunications, information technology processing, and transportation equipment.
Explain at least four effects of globalization that impact your community and your organization. Globalization affects every individual’s everyday life, whether they decide to acknowledge it or not. Sometimes just getting up in each day is a ritual, taking care of oral hygiene, putting on apparel, paper from the rainforest ties each individual to globalization. The car one purchased, the gas to make it operate, electronics invested for the interior, are all portions of how we are part of globalization each day. If you deem that you are not affected by globalization you need examine every aspect of your life and surprisingly see how much globalization affects how we live.