Globalization

Globalization Questionnaire

As the modern companies evolve with new technologies, many organizations are forced to be under competitions striving to produce advanced, better, and newer products and services. Globalization used to be for big company, but today, even small to mid sized businesses, with right expertise, financial stability and capabilities are reaching out globally searching for bigger market share, cheaper labor, and to increase profits.

Globalization

Globalization, according to Hill (2005), states that it refers to the shift toward a more integrated and interdependent world economy which includes globalization of markets and production.

There are many traditional international trade theories such as life-cycles theory, Heckscher-Ohlin theory, and going back to 16th and 17th century, there a theory called mercantilism which argued for a country’s best interest. Among many are few theories that support the concept of the globalization which include Smith’s theory in 1776 called free trade which was proposed that there no government to be influenced to restrict quotas or duties. (Hill, 2005) Another theory called comparative advantage also suggests that unrestricted free trade would increase the world’s production where it is beneficial for everyone. (Hill, 2005)

Drivers of Globalization

There two major factors that shifted the trend toward globalization which are declining of trade barriers and developments in communication, information and transportation.

For the declining of the trade barriers according to IMF.org (2008), over the past 20 years, the growth of world trade has averaged six percent annually. Since the establishment of the General Agreement on Tariffs and Trade (GATT), the international trade has been benefited globally. One of the requirements by GATT was lowering of tariffs. Ecuador in 1990, reduced the tariffs variation from 0-338% to 13-53% by 1991. Also according to IMF (2008), Colombia has removed all non-tariff barriers to trade eliminating the state monopoly over grain imports, and also eliminated all export tariffs except for coffee.

For developments in communication, information and transportation, micro processors, telecommunication technologies, internet and World Wide Web have the major contribution as to globalization as today’s business are fully depended upon these technologies. Since the World Ward II, transportation Technology also has contributed as a driving factor of globalization as the commercial jets would fly people and merchandise to more than 50 countries in within a day instead of months.

Besides the two major factors that drove the globalization, establishment of global institutions additions to IMF, GATT, such organization as WTO, World Bank, UN and many other institutions contributed to help develop better trade system as well.

Four Effect of Globalization

There are many effects that are visible in our community and the organization I work for due the globalization. Few of the contributing factors that are often seen in Southern part of California are diversified work force, cultural differences, technological advancement in bio-industry, and communication.

Due the large immigration, there are many diverse ethnic groups living among our community. The community where I reside have Vietnamese, Chinese, American, Mexican, and Korean. These diversified ethnic groups bring their own unique, values, culture, and provide different work force that can be positively influence at the working environment.

HepaHope where I work created diversified working environment where many scientists and doctors from different countries that bring new bio-medical break through technology that will soon influence the community