Essay Preview: Globalization
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What is globalization, and what are some of the traditional international trade theories that support the concept of globalization?
Globalization is basically labor organizers, journalists, academics, and social activists all working together. People all around the world are more connected today than yesterday. Information and money can be transferred at the snap of a finger. Goods and services produced in China can be in the US the very next business day. Some of the traditional international trade theories which support globalization include theories of free trade, comparative advantage, trade liberalization, and neoliberalism
List the major drivers of globalization and give three examples of each.
Three major drivers of globalization would be technology and communication, trade barriers, and social changes. Improved means of communication such as the internet, fax and cell phones have made the world a smaller place to live in. Transcon flights, shipping lines, improved rail, and road network across borders have made the world so small that people hop from one country to another easily. With the use of internet and ecommerce, documents are now being shared and distributed across borders within split seconds. Trade barriers have been reduced and are shifting from closed end economy to open end economy. Countries are more dependent on each other than ever before. Instead of producing everything, they focus on their own strengths in manufacturing. NAFTA is an example of the reorganization of countries which act in cooperation with each other rather than being a closed end economy. Countries like the United States are more dependent on developing economies like India for outsourcing services like information technology at more economical prices and better quality. The average customer is now more informed, has greater purchasing power and has better knowledge of superior products and services worldwide. Because of television and internet, someone sitting in the most remote spot of Asia knows about the best products and services worldwide. Everyone wants the next best thing for an economical price. Because of this reason, traders and manufacturers must act as global marketers, exporters and importers in order to satisfy the growing needs and wants of customers.