Mgt 448 Essay

758 WordsOct 13, 20114 Pages
MGT/448 Individual Globalization Paper Week One Shirley A Everett Instructor – Gerie Smrcina Globalization in the economic context is related to the increase of individual businesses that operate in a range of countries. Therefore, Globalization stimulates economic growth, creates jobs and raises income levels. Globalization is marked by free trade, free flow of capital and cheaper foreign labor markets. Globalization has several facets; globalization of markets, merging historically distinct and separate national markets into one huge marketplace, and globalization of production, sourcing of goods and services from locations around the globe. There are still many challenges in the global market, for example; distance, time zones, language barriers, cultural differences, as well as national government regulations issues, and business systems improvements. Still, the world is looking smaller through globalization. Drivers of Globalization The role of government and the deregulation of financial market governments, in many countries, have reduced barriers to obtain the benefits of globalization trends. These barriers were tariffs, foreign ownership, and fixed currency. The Gatt Umbrella, Uruguay Round, and the WTO (World Trade Organization, the police of the international trading system), assisted in reducing the trade barriers, removing restrictions to FDI (Foreign Direct Investments) firms, and increasing the cross boarder investments. As a result of these efforts global markets began to open by employing more affiliates abroad while generating value to the global GDP (Gross Domestic Products). The major drivers of globalization are: * The rapid growth of International business activities, especially in the free flow of goods, services, and increase in financial transactions * The technological change particularly in the development of

More about Mgt 448 Essay

Open Document