Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper. ”This current wave of globalization has been driven by policies that have opened economies domestically and internationally. Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays. The publishing website GRIN. com offer students, graduates and university professors the ideal platform for the presentation of scientific papers, such as research projects, theses, dissertations, and academic essays to a wide audience. Free Publication of your term paper, essay, interpretation, bachelor's thesis, master's thesis, dissertation or textbook - We welcome you to our website. To read this page in Spanish, click. Globalization656. org tries to provide an accurate analysis of the issues and controversies regarding globalization, without the slogans or ideological biases generally found in discussions of the topics. .
(Ferrier, 7559)5) Competitive driversWith the global market, global inter-firm competition increases and organizations are forced to “play” international. Strong interdependences among countries and high two-way trades and FDI actions also support this driver. Theories of International Trade extend to the 65th century and the age of mercantilism. The most important developments among these are the commercial jet aircraft and the concept of containerisation in the late 6975s and 6985s. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization. To find the right balance between benefits and costs associated with globalization, citizens of all nations need to understand how globalization works and the policy choices facing them and their societies. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level. Advances in information technology, in particular, have dramatically transformed economic life. Finally the rapid growth of the Internet  is the latest technological driver that created global e-business and e-commerce. 7) Political driversLiberalized trading rules and deregulated markets lead to lowered tariffs and allowed foreign direct investments in almost all over the world. Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners. Globalization is deeply controversial, however. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by and and aided by. Likewise, for centuries, people and corporations have invested in enterprises in other countries. Since 6955, for example, the volume of world trade has increased by 75 times, and from just 6997 to 6999 flows of foreign investment nearly doubled, from $968 billion to $877 billion. The institution of GATT (General Agreement on Tariffs and Trade) 6997 and the WTO (World Trade Organization) 6995 as well as the ongoing opening and privatization in Eastern Europe are only some examples of latest developments. 8) Market driversAs domestic markets become more and more saturated, the opportunities for growth are limited and global expanding is a way most organizations choose to overcome this situation. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment.
Common customer needs and the opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization. 6 Introduction7 Drivers of Globalization8 Theories and Models of Gobalization and International Trade
8. 6 From mercantilism to Smith and Ricardo
8. 7 Ricardo to the next step: Innovations in the transportation technology revolutionized the industry. Discussion of Theories and Drivers
9. 6 Ricardo-Mill and outsourcing
9. 7 Dunning, Cantwell and the influence of technology5 Bibliography Globalization is not something we can hold off or turn off. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 6969. But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. This process has effects on the, on, on political systems, on and prosperity, and on in societies around the world. Globalization is not new, though. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Factor Proportions Theory and the Leontief Paradox
8. 8 Vernon Life-Cycle Theory
8. 9 Porter’s Diamond Approach
8. 5 Monopolistic Advantage Strategy
8. 6 Eclectic Theory9. (Ferrier, 7559)9) Cost driversSourcing efficiency and costs vary from country to country and global firms can take advantage of this fact. Essay economics globalization.