Globalization

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a. What is globalization, and what are some of the traditional international trade theories that support the concept of globalization?

Globalization is the changes in societies and the world economy that result from dramatically increased international trade and cultural exchange. It describes the increase of trade and investing due to the falling of barriers and the interdependence of countries.
source: en.wikipedia.org/wiki/Globalization

The IMF defines globalization as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology" (IMF, World Economic Outlook, May, 1997).

Some traditional international trade theories that support the concept of globalization are theories of free trade, comparative advantage, laissez-faire capitalism, trade liberalization and neoliberalism, etc.

b. List the major drivers of globalization and give three examples of each.

Some of the major drivers of globalization are:

Increased competition: Increased competition has led to more and more companies seeking comparative advantages via policies such as outsourcing to reduce their cost of production by cheaper access to raw materials, human resources, etc. Multinational firms are increasingly cutting their costs to achieve competitive advantage and offer better products with superior quality at surprisingly lower prices. Further, companies are opening up offshore businesses to open up new markets and achieve economies of ...