Globalization is the movement and merging of nations, communities and states for lucrative reasons. This is done by using education, political principles and culture. Driven by competitive, economic, environmental and market factors is an industry's globalization potential. The receptivity of customers to a global product is determined by market forces; deciding whether pursuing a global strategy may provide a cost advantage is determined by economic forces; finding whether the necessary supporting ...view middle of the document...
This increases the workforce and allows individuals to purchase products which they may have not been able to otherwise. Globalization encourages competition among local retailers. The positive aspect of this lies in the motivation to provide the best products at the lowest prices. This can be unconstructive however, in that competition can lead to business failure in small communities, where Mega- giants such as Wal-Mart overtake the entire local market, forcing "homegrown" businesses to go out of business. Globalization can enhance the quality and development of local businesses which in turn, leads to an expansion of available employment and increased wages.
"As supported by conventional economic theory, trade promotes economic efficiency by providing a wider variety of goods, often at lower costs. The globalization of production is concomitant to the globalization of trade as one cannot function without the other," (Rodrigue, 2009). The globalization of trade and industry represents unrestricted interchange of resources throughout the globe. Globalization is the means in which to amalgamate numerous modest markets and financial systems into one distinct and sizeable market.
Barnat, R. (2007). Strategic Management: Industry Drivers of Globalization. Strategic Management. Retrieved February 2, 2010, from http://applications-of-strategic-management.24xls.com/en129
Rodrigue, Dr. J. (2009). Transportation, Globalization and International Trade. Hofstra People. Retrieved February 2, 2010, from
http://people.hofstra.edu/geotrans/eng /ch5en/conc5en/ch5c2en .html