Globalization Questionaire

Globalization Questionnaire

Gladi Nash

MGT/448

April 04, 2015

Ken Cromer

Globalization Questionnaire

Traditional international trade theories supporting globalization

Globalization means a more united and mutually dependent world economy, the globalization of markets and products.  The incorporation of traditionally isolated markets into a global marketplace takes down the obstacles to international trade, it has been said the likes and favorites of customers in different countries are coming together, helping to create a global market.  Many prominent economists, politicians, and business leaders are of the opinion that cohesive and mutually beneficial global economy a good thing. They agree that the breaking down of walls to global trade and investment are the essence of the international economy and lead to more success. Improved commerce and investment performed across a border between two countries will result in better values for goods and services. Experts think that globalization kindles economic development, raises consumer incomes, and creates jobs in countries participating in a global market.

Pros and Cons of Globalization

Between 1920 and 1930, many countries had demanding obstacles to international trade and foreign investment. In the end, this is what led to the Great Depression.  Whenever a company invests resources in business activities outside its home country, you have Foreign Direct Investment (Hill, 2015). Consumer products like Citigroup, Coca-Cola, Sony PlayStation, McDonald’s, Starbucks, Kentucky Fried Chicken and IKEA are frequently heralded as examples of a successful global trend.  By presenting the same basic merchandise globally, this helps to create a worldwide market.  The supporters of global free trade contend that it serves to promote economic growth, establishes employment in the job market and makes firms become more competitive, lowering costs for consumers.  It also serves to provide poorer countries the opportunity to develop economically. Globalization will help raise the global economy with globalization and democracy, most people see fast-moving travel, communications by way of the Web are among the many benefits of globalization. On the other hand, multinational corporations have been blamed for social unfairness, unjust conditions in the workplace and no concern for the environment.  In the past, restricted to commercial activities, corporations operating internationally are manipulating political outcomes more and more and gaining more power. Opponents to globalization say rich companies are acting with less accountability, claiming that individual cultures are being overpowered by American companies going global.