Globalization Chapter Analysis

1221 Words5 Pages
The main purpose of chapter one explains globalization and how it impacts our everyday lives. Chapter one the author describes the elements of globalization and international business. There are many key questions in the chapter that were answered to understand globalization. In this chapter analysis I will discuss the key concepts of globalization. Globalization makes countries interdependent to one another. Through globalization countries are connected through the economy, culture, politics and technology. Technology is the main driver as to how globalization is growing. Globalization is not something that is new. People have been crossing international borders for years. There have been many international businesses that are commercial but now companies are forced to be more competitive when it comes to seeking out countries and reduce trade barriers. Companies have to be more competitive when investing. Every day we are surrounded by imports and exports. Imports are goods or services that enter the country. For example, wine from France or Italy is an import because it was not produced in the United States. The wine was produced and bought by an American company to be sold in the United States for profit. An export is the opposite. Exports are goods and services sold to another country and sent out of the United States. An example of an export would be a cellphone created in the United States. Globalization affects two areas of business, markets and production. Globalization of markets reduces marketing costs. In the chapter the book gave an example about a company having a product and able to redesign the product and translate the add into different languages in order to sell in different countries. Globalization creates new market opportunities because now that there are less trade barriers countries can sell their product in other countries. They have
Open Document