Globalization and the World Economy - 2356 Words

Running head: GLOBALIZATION Globalization and the World Economy Rodney L. Hughes Sr. Columbia Southern University Professor Bob Allen International Business, MBA 6601-06D June 12, 2007 Globalization and the World Economy Globalization is a powerful real aspect on the new world system, and it represents one of the most influential forces in determining the future course of the planet. It is described as having â€Å"many dimensions: economic, political, social, cultural, environmental, and security† (Intriligator, 2001). Globalization in the 21st century is inevitable. Increased globalization and international businesses are growing because†¦show more content†¦The advent of the internet has allowed for rapid access to world markets. Knowing how to use the internet for globalization activities can be very beneficial for a company. In this dotcom economy, everything can be produced anywhere and sold anywhere. The internet has given many companies a new view on how to handle global business needs. Globalization is not just a â€Å"me too† trend. There are solid reasons why some businesses embrace the global path and others do not. Three solid business factors for glob alization are expansion of sales, to acquire resources, and to minimize risk. Daniels, Radebaugh, and Sullivan (2007) claim that a company’s sales are dependent on two factors: the consumers’ interest in their products or services and the consumers’ willingness and ability to buy them. Higher sales mean higher profits, so increased sales are a major motive for company’s expansion into globalization. To acquire resources manufacturers and distributors seek out products, services, and components produced in foreign countries (Daniels, et al., p18). Foreign sources may give companies lower costs, new or better products, and additional operating knowledge. To minimize swings in sales and profits, companies may seek out foreign markets to take advantage of business cycle differences among countries (Daniels, et al., p18). International operations may reduce operating risk by smoothing sales and profits and preventingShow MoreRelatedThe Globalization Of Th e World Economy Essay1007 Words   |  5 PagesGLOBAL BENEFITS Introduction The globalization of the World economy has inspired companies to expand abroad to acquire competitive advantage (Longnecker, 2004). In light of this expansion, companies send their employees to foreign countries on assignments. The challenge that comes with this kind of transfer revolves around the employee s willingness to uproot their lives and relocate to a new state (Longnecker, 2004). 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