Advantages Of Globalization In The Wine Industry
Globalisation is the integration of countries and individuals worldwide (Peng, 2003). Furthermore, Economic globalisation is the international integration of the flow of goods, technology, labour, capital, information and processes utilised in the establishment of globalisation.
Globalisation is made possible through international trade; international trade started within the 18th century and is a big part of global economies today. This trade consists of imports and exports; imports are goods or services bought by one country from another, exports are goods or services sold by one country to another.
Underneath these concepts of trade and globalisation we will explore the theories of competitive and comparative advantages of globalised business. A comparative advantage is the superior features of a country- such as natural endowment of resources or political structures- which provide it with distinct advantages in global competition. A competitive advantage is the unique assets or features of …show more content…
However the production and consumption of wine has been localised since the 1990’s. Most of the worlds wine consumers bought local wines or imported wines from nearby producing countries, this is mainly due to history and countries remaining true to their traditional roots of wine making such as the United Kingdom’s preference for wines made in France. Winemaking thus had limited international trade as they remained attached to local traditions. However, competitive positions in wine producing countries have exponentially changed in current times. Due to elimination of tariffs, some trade barriers and cost reductions global wine exports specifically have increased from 15% to 25% since the 1990s (Anderson et al, 2001) and thus have also enabled wine producers the chance to sell wine beyond regional