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Globalization of Markets?
Globalization
• Globalization of markets - the merging of
Introduction historically distinct and separate national
markets into one huge global marketplace
In the world economy today, we see
• It no longer makes sense to talk about the
• fewer self-contained national economies with “German market” or the “American market”
high barriers to cross-border trade and
investment • Instead, there is the “global market”
** isolated from each other with barrier falling trade barriers make it easier to
sell globally
** by distance, time zones, language, different
In many markets today, the tastes and
regulation, culture and business system preferences of consumers in different
• a more integrated global economic system nations are converging upon some
with lower barriers to trade and investment global norm
• over $12 million of goods and $3.3 trillion of The Globalization of Markets
services being sold across national borders A company do not have to be the size
• the establishment of international institutions of these multinational giants to
facilitate and benefit from
globalization market
• A multinational enterprise (MNE) is any Question: Is the shift toward a more integrated and
business that has productive activities in two interdependent global economy a good thing?
or more countries
Answer:
• Since the 1960s:
• Supporters believe that increased trade and
there has been a rise in non-U.S. cross-border investment mean
multinationals
lower prices for goods and services
there has been a rise in mini-
multinationals greater economic growth
but, political and economic disruptions • Protesters fear that globalization is forever
can throw plans into disarray changing the world in a negative way
free trade does not lead to more implement economic policies based on
pollution and labor exploitation, it free market economies
leads to less receive debt forgiveness for debts
incurred under totalitarian regimes