Global

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

According to Hill, 2009 globalization is a fundamental shift in the economy. Mercantilism is one of the traditional international trade theories that support the concept of globalization, it advocates that countries should encourage exports and discourage imports. Another, trade theory is Adam Smith's theory of absolute advantage, it was the first to explain why unrestricted free trade is beneficial to a country. In addition, free trade refers to the government not controlling what citizens can buy, produce or sell by influence of quotas or duties. Although there are positive effects of globalization a large portion of the population in many countries believe that globalization has detrimental effects on living standards and the environment

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

There are two underlying major drivers of globalization. One of the major drivers is the decline

in barriers to the free flow of goods, services, and capital. Trade barriers have been reduced and are shifting from closed end economy to open end economy. The second factor s technological change, particularly the dramatic developments in recent years in communication, information processing, and

transportation technologies. The technological change allows a greater speed of processing information. For example being able to communicate via internet across the country.

3. Explain at least four effects of globalization that impact your community and your organization.

One of the effects of globalization that may impact communities and organizations is employment opportunities or outsourcing. With the increase of jobs going global, there is always a possibility that jobs may be relocated to other countries. Another effect is competition, with the way the world is competing, many organizations are looking for innovative ways to improve on the quality and standards of their service and goods. In addition, communication or lack of communication is two additional examples. Email and telephone communication has taken over the lack of face-to-face business communication and interaction.