Globalization and commerce

Résumé du document

Globalization is the production and distribution of products and services of a homogeneous type and quality on a worldwide basis. "Globalization is the activity whereby "distinct" national economies are subsumed and re-articulated into the system by essentially international processes and transactions" Hirst and Thomson, 1992. Globalization means, in brief, making the whole world a small village. For some it is building up a "united universal empire." Another point of view takes this word to mean overcoming the old obstacles of nationality, demography and geography, and dealing universally without limiting boundaries. It also means the freedom of communication in all domains in the world. As for the source of this world movement, it is a part of our world, North America. In its universality, globalization depends on economy and media, using advanced technological networks that have expanded in the world without any objections or boundaries, languages or politics.

Extraits

[...] Multi-domestic industries: - Competition in one country is independent of competition elsewhere - This lead to a collection of domestic industries - A firm can and should manage its world-wide activities as a portfolio of independent subsidiaries in each country. - The firm therefore should adopt a country-centered strategy. Global industries: - Competition in one country influenced by competition elsewhere, leads to international rivalry - To be a leader a firm must develop and implement a strategy that integrates its activities in various countries but some portions of the firm's activities must take place in each individual country. - The firm should adopt a global strategy. [...]

[...] “Globalization and commerce” What is globalization? It is the production and distribution of products and services of a homogeneous type and quality on a worldwide basis. “Globalization is the activity whereby “distinct” national economies are subsumed and re-articulated into the system by essentially international processes and transactions” Hirst and Thomson Globalization means, in brief, making the whole world a small village. For some it is building up a "united universal empire." Another point of view takes this word to mean overcoming the old obstacles of nationality, demography and geography, and dealing universally without limiting boundaries. [...]

[...] It will not only affect their economy but also their relationships and their lives. The globalization of economy through modern technological means does not intend at all to limit those international relationships only in the field of buying and selling, for the buyer and seller are always connected to each other. The economic matters are the factors that give life its taste for man, not only in its material dimensions, but also in its spiritual one. The acceptance of globalization as a material important necessity is not a bad matter at all. [...]

[...] Why is globalization important? - It can lead into cultural homogenization (“Global village”) - It make markets to converge - It leads to globalization of customers - Economies of scale and scope - Increase in levels of fixed costs - Globalization has lead to fundamental changes in industry structure (deregulation, privatization, technological change) - Globalization is characterized by cost drivers: Some drivers of globalization arise either from the country and regional structure, others from the economics of the industry or can be strategically determined by companies themselves. [...]

[...] We can also estimate the benefit for the buyer and seller, and how a competitive spirit improves on quality of products and lowering prices. This need seeks to overpass languages, boundaries and nationalities. The world is one market full of opportunities and open to all for shopping. The modern technological tools make this need a reality. There are no objections; rather there is a preference to shop through the internet instead of traveling long distances. Many years are not enough time to visit the shopping centers we see in few minutes on the Internet. [...]