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Globalization Questionnaire Essay

617 words - 2 pages

1. What is globalization, and what are some of the traditional international trade theories that support the concept of globalization?"Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has several different facets including the globalization of markets and the globalization of production," (Hill, 2004). Although no one theory can explain the apparent pattern of international trade, together, the theories of Free Trade, Life-Cycle, Mercantilism, Heckscher0Ohlin, New Trade and Porter's Theory do suggest which factors are important and can support the concept of globalization.2. List the major drivers of globalization and give three examples of each.The major drivers of globalization would be declining trade and investment barriers, technology and communication and social -demographic changes. Trade barriers have been reduced and are shifting from closed and economy to open end economy. "The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market," (Hill, 2004). The lowering of trade barriers has also facilitated the globalization of production. "According to data from the World Trade Organization, the volume of world trade has grown faster than the volume of world output since 1950," (Hill, 2004). Some examples of technology and communication would be internet, fax, cell phones, and transportation. Using these technologies create greater data flow and increase the amount of information that can be processed by individuals and firms. Social-demographic is a driver that has been a dramatic change in the demographics of the global economy. Examples of changing demographics would be the dominance in the world economy and world trade picture, dominance in world foreign direct investment, and dominance of large multinational U.S. firms on the international business scene. (Wikipeida, 2006).3. Explain at least four effects of globalization that impact your community and your organization.1. Economies of scale - One of the major advantages of...

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