Globalization Case

Globalization can be defined as trade amongst national economies a process where countries can exchange goods and services, this process has resulted in interdependency amongst countries. The exchange of resources and trade of goods and services amongst countries are the factors popularising globalisation. Advancement of technology has set a centre stage for Global Village, social networks such as facebook and twitter which makes it possible for people to communicate around the globe and enhance cultural diversity. The internet technology is globally intergrading and amalgamating the people of the world, it can be accessed at a click of a button at the language of your choice.

South Africa recently became a new member of BRICS (Brazil, Russia, India China and South Africa) countries with aim of enhancing economic trade between the four countries which are regarded as the biggest and fastest growing emerging markets. The joint venture between the BRICS countries will reduce trade barriers making it easy to do business in those countries; this is all part of globalisation

Hosting the FIFA world cup in South Africa was also aiming to attract and create a favourable climate for direct foreign investment and tourism growth. When foreign business invests in a country it creates job opportunities, which will subsequently enhance the standard of living for the people in that country. Local businesses become more competitive ultimately consumer gets best quality products & services at competitive prices.

Features that explain globalization:

 the integration into world markets of national economies;

 the transition from a "high volume economy" into a "high value economy" (this is due to the growing knowledge consumers and market forces of demand and supply)

Globalisation can be defined in two forms which is globalisation of Markets and Production

Globalization of Markets: Globalization of the market refers to the reduction or elimination of trade barriers between national markets and convergence of fragmented national markets into a single global marketplace. There is little convergence in global consumer taste and preference

Due to accesses to information and technology, Companies such as Mc Donald and KFC are typical example of business that serves the global market with the same product.

Globalization of Production: It refers to sourcing of goods and services from locations around the globe. This implies taking advantage of national differences in the cost and quality of factors of production e.g. low labour cost in developing countries. This allows firms to reduce the average cost of production. In addition firms are able to supply a wider range of goods and services. Consumers benefit from lower costs and greater product