Globalization Questionnaire

Many have a different view of globalization; some are angry and view globalization as job loses throughout the United States. Yet another viewpoint is excitement about job growth and opportunities. Are the different views from a lack of information and understanding; or are both view's correct?

What is Globalization?

"Globalization is not something we can hold off or turn off . . . it is the economic equivalent of a force of nature -- like wind or water." Bill Clinton (American 42nd US president (1993-2001)). "The word "globalization" implies a transition to "globality. Globality suggests the basic unity of the human spirit, expressed through global awareness, a consciousness of common humanity, concern for the earth, and a common set of basic norms"( Aaron Bernstein 2004).

Trade Theories

One very common trade theory is the product life-cycle theory. The product life-cycle theory is an accurate explanation of international trade patterns. The photocopier is a good example; Xerox was the first to develop and sell the product in the early 1960s in the United States. Xerox exported the photocopiers from the United States to Japan and the advanced countries of Western Europe. As the demand for the photocopiers grew in those countries, Xerox entered into joint ventures to set up production in Japan (Fuji-Xerox) and Great Britain. When Xerox's patents expired, other foreign competitors began to enter the market. U.S. users began to purchase the photocopiers from Japanese companies because they were less expensive; this created a decline in exports from the United States.

Major Drivers

Almost every book and articles through the internet on globalization refer to different drivers of globalization; listed are only three major drivers.

1) Technological drivers

"Technology created and set the groundwork for modern globalization. Innovations in the transportation technology revolutionized the industry. The most significant developments among these are the commercial jet aircraft and the concept of containerization in the late 1970s and 1980s. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level. The quick escalation of the Internet1 is the latest technological driver that created global ebusiness and e-commerce" (Markus Bauernfeind).

2) Market drivers

"Domestic markets become more and more saturated, the opportunities for development are limited and global expanding is a way most organizations choose to overcome this situation. Common customer needs and the opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization" (Markus Bauernfeind).

3) Cost drivers

"Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact. Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays" (Markus Bauernfeind).

Effects of Globalization in the Printing Industry

The pulp and paper industry is experiencing the impact of globalization. There have been and continue to be many mills closing in North America due to European and Asian producers having a greater influence on the paper market. Last year more than 5 million tons of North American capacity was lost. Not only has this affected the cost, the supply has changed beyond anyone's prediction. The paper mills are closing so fast that while an advertising agency is creating a campaign using a particular type of paper for the printed pieces; by the time they are done and ready to go to press the paper may no longer be available. The effect of this is enormous; the printer scrambles to locate comparable paper within the same price as the previous paper (paper is a large cost of printing) while keeping the deadline for the advertising agency. The advertising agency needs to keep their deadline and budget with their customer who is launching a campaign. The end customer who the campaign