Globalization Opposing Factors

The pros and cons of Globalization are widely discussed since its origination in the beginning of the 1970s thereof; as such it is not a new phenomenon however its concept is relatively new. Thomas Friedman in The World is Flat refers to globalization in varying eras. Globalization 1.0 lasting from 1492 to around the 1800, shrinking the world from medium to small; globalization 2.0 the key agent of change, the dynamic force driving global integration, was multinational companies lasting from 1800 to 2000 and globalization 3.0 flattening the world and opening up collaboration and competition globally from 2000 forward. Now with Social media the world seems much smaller than Friedman ascertained thus further evolving globalization in my opinion.

Globalization has been defined by many sources, varying across different fields and social situations.

“Globalization is the growing economic interdependence among national economies which results from increasing cross border flows of mechanized goods, services, know-how and capital.” (International Trade Center, 2001)

“Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.” (Wild & Wild, 2012)

Or simply put “Globalization is the process by which people, products, information and money can move freely across borders” (Lasserre, 2012)

Globalization is associated with some degree of standardization of products and practices plus a high level of coordination and integration of activities in the company’s value chain1. Its benefits have seen the success of organizations such as Sony, Coca Cola, Apple and Citibank. Coca Cola, for example, adapted a globalized strategy in the early 1900s for which they are now deemed the most well-known brand in the world. The success these companies obtained was driven by the push factors for globalization. These push factors refer to Political, Technological, Social and Competitive, whereby companies were able to engage in trade amongst nations, reduce cost through economies of scale, increase brand awareness and compete globally reaping exorbitant profits. For consumers, it allowed for more choice, availability and transparency.

On the other hand, the localization push continues to work against globalization. Localization, commonly referred to as L10n, is the practice of adjusting a product's functional properties and characteristics to accommodate the language, cultural, political and legal differences of a foreign market or country2. The benefits of localization are flexibility, proximity and quick response time whereby firms gain an increased market power and ultimately market share. The four driving forces of the localization push are cultural, commercial, technical and legal. These forces allows firm to operate independently with different approaches