Katie L. Williams
MGT 448 – Global Business Strategies
September 26, 2011
Instructor: Richard Shaffer
Many individuals do not know or realization what globalization is, let alone how it affects organizations and communities. At the beginning of this course it is necessary for students to compile an essay questioner on globalization. In this questioner students are to touch base on the following topics: what globalization is, identify a few theories in trade, which back up the concepts of globalization. In addition, students need to describe the driving forces of globalization and provide examples these drivers. Last students need to explain the four effects of globalization that affects their communities or organizations.
In order for one to understand globalization completely, they must first understand what globalization is. According to (What is Globalization?, 2011, p. 1), “Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.” Common knowledge shows that globalization has two facets. These two facets are known as globalization of markets and productions. The globalization of markets is refers to as the merging of several markets into one global market. As (Hill, 2009, p. 6) states, “falling trade barriers make it easier to sell international. Firms help create the global market by offering the same basic products worldwide.” The globalization of production is commonly known for sourcing of services and goods to several locations around the world.“Companies compete more effectively by lowering their overall cost structure or improving the quality of functionality of their product offering” (Hill, 2009, p. 7).
International Trade Theories
Several international trade theories exist; however, in this...