The paper "The Major Globalization Processes at Work in Today’ s World Economy " is an outstanding example of business coursework. Today, the world has become closer than ever before in terms of information, behaviors, consumption patterns and business dealings. It is a common sight for a Chinese made toy or a Sri Lankan made a dress to be in a famous US or European department store racks while to see pricy Rolls Royce gliding along the Shanghai city streets. Coke, MTV, Star Bucks and McDonald's, Nike are some of the global brand icons of the globalized market place.
It is quite common to see a manager from Germany working in a factory site in China or an American working side by side with Saudi Arabians on a giant chemical refinery project. Similarly, products today are produced with raw-material and labour drawn from different parts of the world (Metthee, 1994). These are the manifestations of the process of globalization at work. Overview of Globalization Globalization generally refers to the “ process towards a more integrated and interdependent world economy” (Hill, 2003, p 6). It is reflected in the changes in societies and the world economy that are the result of dramatically increased trade and cultural exchange.
The process of globalization also impinges upon the international trade in terms of reduced restrictions on trade and increased freedom of movement in goods, capital and manpower. The developments achieved in the transportation industry, telecommunication and IT industry, as well as legal and banking systems, have facilitated such free movement and the dispersion of the effects of globalization to a high level across remote corners of the world. Globalization vs. Internationalization It is important to note the differentiation between a global enterprise and an international firm.
An international firm merely engages in business activities which cross national boundaries or involve itself in businesses in two or more countries. The International organization is firmly rooted within its own nation. Even if they establish manufacturing and other operations in various other countries, the norms, practices, policies and the culture of the headquarters will be applied into the branch organizations. By contrast, the global firm views the whole world as being a nationless, borderless market place where goods, capital and people have to move freely.
However, one should not believe that globalization is a process restricted to large multinational firms and transnational alone. An example is G. W. Barth, a cocoa bean roasting machinery company that had managed to capture 70% of the global market with just over 65 personnel (Holstein, 1991). Market Globalization Globalization can be seen within the perspective of two main components of markets and globalization of production. In the case of globalization of markets, traditional distances and separate markets are increasingly merging in terms of tastes and preferences of consumers in different nations.
Even the values and attitudes being held by consumers towards various social outlooks of products are slowly but surely converging as global brands invade even the most isolated markets and tantalize the consumer’ s mind with innovative and customized marketing communication messages. The process of market globalization has succeeded to a great degree with international managers juggling the dilemmas of globalized offers with customized localization to tailor-make global products to suit local tastes. MacMaharaja with mutton instead of the beef burger served in Indian McDonalds is an example of such customization by global brands (Armstrong and Kotler, 2000).
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