The paper 'International Business Environment - Dell" is a perfect example of a management case study. Inter-linkages between economies across different geographies have existed for centuries but it is only recently that the world has become truly integrated into a ‘ global village’ rather than in a state of one group of countries exploiting the other. Capitalism and the Industrial Revolution had its roots in technological innovations like the power looms and railroads in Britain in the middle 19th century but it soon spread across Europe and North America, allowing for growth in commerce (Chirot, 2000).
The modernization of the European and North American economies was aided to a large extent on the availability of raw materials (cotton from India in the case of Britain) and labor (African slaves for North America) from the colonies. By the advent of the 20th century, however, the limits of the capitalist development had been reached, leading to the Great Depression of the 1920s in North America and Europe (Giddens, 1986). The two World Wars changed the global economic power balance, with most of the colonies gaining independence over the period and Soviet Russia becoming more powerful and dissociated from the western powers.
Post-war reconstruction, growing urbanization and technology improvements revived the North American and European economies while Soviet Russia too developed technological capabilities. However, the world got bifurcated between the capitalist (mainly North America and Europe) and the socialist (mainly the USSR) camps while the Third World countries (the developing or underdeveloped nations, most typically erstwhile colonies of European powers) aligned themselves to either of the two camps. The global economic order has significantly changed since the end of the Cold War in the late 1980s.
As the divergence of the world between the two superpowers and their respective beneficiaries in the so-called Third World disappeared, the world has now become a ‘ global village’ that is increasingly inter-linked for mutual benefits. The processes of production and consumption have undergone significant globalization, aided by the nearly free flow of capital and technology across political barriers.
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