The Future of Globalization
“The Future of Globalization”
What exactly is globalisation?
Before I talk about the future of globalization it is first of all important to understand what it truly means. From my research on the topic I feel that the following definition by the IMF is the most accurate. They describe globalization as the “growing economic interdependence of countries worldwide through the increasing volume and a variety of cross-border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology”. Thomas Freeman, author of “The Lexus and the Olive Tree” describes Globalization as the inexorable integration of markets, nation states and technologies to a degree never witnessed before in a way that is enabling individuals, corporations and nation states to reach around the world, farther, faster, deeper and cheaper than ever before. To put it very simply globalization brings many companies and products to very different parts of the world and this is changing the globe that we live in today. It will also have a huge bearing on the success and downfall of all future economies and the livelihoods of each country’s inhabitants.
It is said that Globalization has many facets, the main two being the Globalization of markets and production. The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. Falling barriers to cross trade have made it far easier to sell on an international scale. Tastes and preferences are converging on some global norm which is helping to create a global market. Firms are utilizing the trend by offering standardized products worldwide and thus creating a global market. (Hill, 2007) Products such as Coca Cola, Kleenex tissues, Disney toys, IKEA furniture and Sony Playstations are examples of these. The globalization of production refers to the sourcing of goods and services from locations around the
What exactly is globalisation?
Before I talk about the future of globalization it is first of all important to understand what it truly means. From my research on the topic I feel that the following definition by the IMF is the most accurate. They describe globalization as the “growing economic interdependence of countries worldwide through the increasing volume and a variety of cross-border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology”. Thomas Freeman, author of “The Lexus and the Olive Tree” describes Globalization as the inexorable integration of markets, nation states and technologies to a degree never witnessed before in a way that is enabling individuals, corporations and nation states to reach around the world, farther, faster, deeper and cheaper than ever before. To put it very simply globalization brings many companies and products to very different parts of the world and this is changing the globe that we live in today. It will also have a huge bearing on the success and downfall of all future economies and the livelihoods of each country’s inhabitants.
It is said that Globalization has many facets, the main two being the Globalization of markets and production. The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. Falling barriers to cross trade have made it far easier to sell on an international scale. Tastes and preferences are converging on some global norm which is helping to create a global market. Firms are utilizing the trend by offering standardized products worldwide and thus creating a global market. (Hill, 2007) Products such as Coca Cola, Kleenex tissues, Disney toys, IKEA furniture and Sony Playstations are examples of these. The globalization of production refers to the sourcing of goods and services from locations around the
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