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Definition of Globalization

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What is meant by the term 'globalization'? Illustrate your answer with references to your chosen organization or industry.
According to Held et al (1999) globalisation is "the widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social life, from the cultural to the criminal, the financial to the spiritual". The main indicators ofglobalization are trade and foreign direct investment (FDI). There has been a recent rapid increase in international trade from 1950 to now (more than 27 fold). FDI is the investment by a firm based in one country in production and/or operating capacity in another country (i.e. not mere 'portfolio investment'). The major players in this expansion of international trade and in the even greater increase in FDI are the multinational or transnational corporations (MNCs or TNCs).
These increases have led to increased economic interdependency on a global scale but globalization is also manifested by increased political, legal, technical, social, cultural and ecological interdependency.
Briefly explain what are some of the main drivers of globalization. Illustrate your answer with references to your own chosen organization, industry and/or country.
The main drivers of globalization are economic, political and technological. Economic factors include economies of scale and the access to cheaper inputs. Technological factors include improved and cheaper transportation and communications. Economic factors include economies of scale and the access to cheaper inputs. Economies of scale are when a larger scale of production results in lower unit costs. Finns will seek to expand their markets in order to increase the scale of their sales, allowing increased production, lower costs and increased competitiveness. This pushes the firms to internationalize and globalize their operations. Access to cheaper

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