Globalization Questionnaire
Dana Daugherty
MGT/448
September 4, 2012
Elizabeth Newburn
Globalization Questionnaire
This paper is going to discuss the definition of Globalization and theories that support the concept, the major drivers of globalization and it will explain 4 effects if globalization that impact the community and the company.
Globalization
Globalization is the process of going over the borders to do business with other countries. Globalization refers to the shift toward a more integrated and independent world economy. Globalization has a number of different parts, which include globalization of markets and globalization of productions (Hill, 2009). A few theories that support the concept of globalization would be Free trade, new trade and Mercantilism.
Drivers
There are 4 major drivers for marketing, cost, government, and competitive drivers. Examples are marketing drivers increases travel gets global customers, and establishments of world brands. Cost drivers keep pushing for economics scales, and increases cost of product development compared to the market life. Government drivers reduce tariff barriers and non-tariff barriers, and change to open market economics from closed communist systems in Eastern Europe. Competitive drivers keep increases in the level of world trade and increase in new competitors that determine to become global competitors (Bauernfeind, 2005).
Effects on Globalizations DirecTV is a very popular satellite company. DirecTV has tons of retail stores and call centers over the United States. The company provides International programing for customer are from overseas but DirecTV actually doesn’t provide or sell services to customer that live overseas. DirecTV only services 12 million customers that live in Latin America and the Caribbean ("A Unique Entertainment Experience", 2012). This affects DirecTV because