Globalization

Summary. As companies contemplate adjustments to their global strategies, it is important to recognize how much continuity there still is even in a period of wrenching change. The idea of a world where economic efficiency alone drives patterns of international flows was always a myth. Globalization has always been an uneven process, with cross-country differences and international conflicts significantly dampening international flows. That’s a big part of why — even before the present crisis in Ukraine — only about 20% of global economic output ended up in a different country from where it was produced.As the landscape shifts, global strategies must be updated, but managers should avoid the costly overreactions that tend to follow major shocks to globalization. In the U.S., real Surging demand for goods could only translate into more trade and more consumption to the extent that supply could rise to fulfill it. The war in Ukraine is Before the war, trade was 2. Capital Flows Much like trade, international capital flows also plummeted at the beginning of the pandemic, and they have also recovered. In 2020, foreign direct investment (FDI) flows (which reflect companies buying, building, or reinvesting in operations abroad) fell below $1 trillion for the first time since 2005. That fits with a broader pattern of slowing growth across other information flow measures. The Looking forward, the globalization of information flows is clouded with an especially high level of uncerta...

Summary. As the coronavirus swept the world, closing borders and halting international trade and capital flows, there were questions about the pandemic’s lasting impact on globalization. But a close look at the recent data paints a much more optimistic picture. While international travel remains significantly down and is not expected to rebound until 2023, cross-border trade, capital, and information flows have largely stabilized, recovered, or even grown over the last year. The bottom line for business is that Covid-19 has not knocked globalization down to anywhere close to what would be required for strategists to narrow their focus to their home countries or regions. Cross-border flows The Covid-19 pandemic is not likely to send the world’s level of globalization below where it stood during the 2008-09 global financial crisis (the worst setback for international The only part of the index showing an unprecedented collapse due to Covid-19 is people flows. Trade has rebounded strongly, capital flows are recovering, and digital information flows have surged. Consider the business implications of developments in each of these four areas: 1. Trade Flows The rebound of world trade has surpassed even the most optimistic The trade turnaround should put to rest the idea that Covid-19 is the last straw for Expect supply chain shifts to 2. Capital Flows Cross-border investment flows were hit even harder than trade by Covid-19. Investors withdrew International corporate investment,...

Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more similar. Globalization in History Globalization has a long history, for example, Ancient Greek culture was spread across much of southwestern Asia, northern Africa, and southern Europe. The globalization of Greek culture came with the conqueror Alexander the Great. In fact, there are cities named for Alexander in Iraq (Iskandariya), Egypt (Alexandria), and Turkey (Alexandria Troas). The Silk Road, a trade route between China and the Mediterranean, promoted the exchange of ideas and knowledge, along with trade goods and foods such as silk, spices, porcelain, and other treasures from the East. When Europeans began establishing colonies overseas, globalization grew. Many early European explorers were eager to bring the Christian religion to the regions they visited. The globalization of Christianity spread from Europe to Latin America through Christian missionaries working with the local populations. Globalization was accelerated in the nineteenth century with the Industrial Revolution, as mechanical mills and factories became more common. Many companies used raw materials from distant lands. They also sold their goods in other countries. Britain’s colony in India, for instance, suppli...

By • Technical Features Writer What is globalization? Globalization is the process by which ideas, knowledge, information, goods and services spread around the world. In business, the term is used in an economic context to describe integrated economies marked by free trade, the free flow of capital among countries and easy access to foreign resources, including , to maximize returns and benefit for the common good. Globalization, or globalisation as it is known in some parts of the world, is driven by the convergence of cultural and economic systems. This convergence promotes -- and in some cases necessitates -- increased interaction, integration and interdependence among nations. The more countries and regions of the world become intertwined politically, culturally and economically, the more globalized the world becomes. How globalization works In a globalized economy, countries specialize in the products and services they have a competitive advantage in. This generally means what they can produce and provide most efficiently, with the least amount of resources, at a lower cost than competing nations. If all countries are specializing in what they do best, production should be more efficient worldwide, prices should be lower, economic growth widespread and all countries should benefit -- in theory. Policies that promote free trade, open borders and international cooperation all drive economic globalization. They enable businesses to access lower priced raw materials and p...

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe ...

• • MLA 8TH EDITION • Azzi, Stephen. "Globalization". The Canadian Encyclopedia, 30 January 2015, Historica Canada. www.thecanadianencyclopedia.ca/en/article/globalization. Accessed 16 June 2023. • • • APA 6TH EDITION • Azzi, S. (2015). Globalization. In The Canadian Encyclopedia. Retrieved from https://www.thecanadianencyclopedia.ca/en/article/globalization • • • CHICAGO 17TH EDITION • Azzi, Stephen. "Globalization." The Canadian Encyclopedia. Historica Canada. Article published November 01, 2009; Last Edited January 30, 2015. • • • TURABIAN 8TH EDITION • The Canadian Encyclopedia, s.v. "Globalization," by Stephen Azzi, Accessed June 16, 2023, https://www.thecanadianencyclopedia.ca/en/article/globalization • Globalization is the process of integration and interdependence of people and countries around the world. Although Canada, like most industrialized nations, is more interconnected globally than ever before, our economy and culture remain, as they always have, overwhelmingly tied to the United States. 19th Century Beginnings The term globalization likely originated in the 1960s and became a buzzword in the 1990s. The phenomenon itself is much older, dating at least to the 19th century. It is caused primarily by improvements in communication and transportation technology, People and countries respond to globalization differently. It has had a stronger impact on richer countries than on poorer ones, which have a shortage of advanced technology, capital, and goods to trad...