The major drivers of globalization and the IMF

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What is globalization?

The new era of business brings about a more global economy. Harknett (2001) states "globalization is the increasing scope, scale and integration of interactions between and exchanges of ideas, peoples, and goods globally. It is usually discussed as a set of forces moving beyond the control of the traditional territorial national state." Although globalization is not a new concept, the advent of new/ faster technologies such as emails, Internet/Intranets, etc. have increased the pace that business moves. There is an increased mobility of goods/services of an organization as it extends it business activities to other parts of the world. Global competition is widely felt as businesses compete with both its local and global counterparts. Organizations' are no longer bound by geographical distance. In addition to breaking down the language barrier, different forms of communication are needed to reach local and international customers. Facilities must be able to effectively and efficiently communicate with one another.

List the major drivers of globalization. Give three examples of each.

There are several major drivers of globalization including technology (transportation, broadcasting, and e-commerce), economics, culture (western management and lifestyles), politics/government, cost aspects (lower labor costs, expanded human capital market), market aspects and competitive action. Technology allows speed in communication, delivery and speed of product life cycles. It also lowers the cost of market entry in some markets (reduces the overhead cost for infrastructure). With globalization, there is meeting of tastes, brands, products and consumers that was once limited by distance.

What are some major regional trading blocs?

There are several regional trading blocs in existence which includes the European Union, North American Free Trade Agreement, Association of South East Asian Nations, SADC and COMESA.

References

Harknett, R. (2001). Lenses of analysis: glossary. Retrieved on May 31, 2005 from http://www.wwnorton.com/lenses/.

Strategy, global vision and future perspective. Retrieved on June 1, 2005 from http://www.infra.kth.se/courses/1H1146/Files/globalvision.pdf.

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International Monetary Fund

The First World War and the United States' economic slump led to the Great Depression which had several devastating effects to the United States and a worldwide negative impact. On October 29, 1929, the stock market crashed which officially commenced the Great Depression and ended when the United States entered the Second ...