International Business and Globalization Essay
According to Robert J. Carbaugh (2011), the high degree of economic interdependence among today’s economics reflects the historical evolution of the world’s economic and political order. At the end of World War II, the United States was economically and politically the most powerful nation in the world, a situation expressed in the saying, “When the United States sneezes, the economies of other nations catch a cold.” But with passage of time, the U.S. economy has become increasingly integrated into the economic activities of foreign countries.
Recognizing that world economic interdependence is complex and its effects uneven, the economic community has taken steps toward international cooperation. Conferences devoted to …show more content…
Global integration is the production and distribution of products and services of a homogeneous type and quality on a worldwide basis. Global integration can be a problem for the international firm if it causes the firm to overlook important local or regional differences in things such as personnel practices or customer tastes.
For example, if an appliance maker used a pure globalization strategy, it might not recognize that some countries are very much accustomed to top loading washers, while others are more partial to front loaders. International business is a mechanism to bring about globalization. These are three types of globalization:
2.1 Cultural Globalization
Culture has increasingly become a commodity. Popular books and films have international markets.
For example, Murdoch has opened TV channels (STAR News, STAR Movies and STAR Plus) in India. Cultural globalization has been facilitated by the information revolution, the spread of satellite communication, telecommunication networks, information technology and the Internet etc. This global flow of ideas, knowledge and value is likely to flatten out cultural differences between nations, regions and individuals. As this flow of culture is mainly from the central to the periphery, from the North to the South, and from the towns and