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Globalization of Business

Globalization∑the spread of economic innovations around the world and the political and cultural adjustments that accompany this diffusion∑appears to be unstoppable. The reason is because globalization it is not the result of a planned activity by government or military power "toward ever larger geopolitical entities. Nor is it the product of some growing ideological conformity on how we should live. It is, rather, the organic result of the virtuous cycle a, by which economic convergence and the diffusion of innovation raise standards of living over time" (Lewis & Harris, 1992, p. 114).

In this context, globalization has been occurring in some form for the last three millennia. The Phoenicians "spread innovations almost entirely through the movement of products (trade) to small centers of development scattered around the Mediterranean. The diffusion of process technology followed after∑sometimes centuries later" (Lewis & Harris, 1992, p. 114). Although the speed of diffusion among Europe, North America, and Japan had increased by the first half of the 20th century, it was still limited almost entirely to trade in manufactured goods because of dissimilarities in the way people lived and the relative economic unimportance of trade in services. What is new about globalization in the contemporary period is that innovations occurring within any of the developed economies can be transferred to and adopted within any other developed economy in a minimum amount of time (Lewis & Harris, 1992, p. 115).

Globalization is growing as far as both finished products and components are concerned. In many industries there is a clear tendency towards globalization. It is believed that this phenomenon will grow as it is aided by the progressive reduction in barriers between countries and differences between consumers. Market globalization, on the other hand, also depends on the behavior of companies. For example, Japanese producers have g...

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Globalization of Business. (2000, January 01). In Retrieved 09:02, October 20, 2014, from