 Globalization of market-explain with example

Answer: The globalization of market refers to the merging of historically individual and
different national markets into one huge marketplace. Globalization of markets is one of the
most fascinating developments of this century. Its impact on economic transactions,
processes, institutions, and players is dramatic and wide ranging. It challenges established
norms and behavior and requires different mindsets. It creates opportunities for the well
prepared participants who can be proactive and visionary.' Globalization of markets involves
the growing interdependency among the economies of the world; multinational nature of
sourcing, manufacturing, trading, and investment activities; increasing frequency of cross-
border transactions and financing; and heightened intensisy of competition among a larger
number of players.2 This phenomenon has been fueled by advances in communication and
transportation technologies, the spread of economic growth and wealth around the world,
the loosening of barriers to trade, and the formation of regional economic blocs.3
Development of new technologies and the proliferation of new products also contributes to
the globalization of markets. Simply consider the following industries which came into
existence only in the last decade: medical imaging, biotechnology, composite materials,
robotics, and process innovations. Gaining momentum since the end of World War II, the
globalization of markets has led to the formation of irreversible economic linkages among
countries. It has also shifted the focus away from the nation-state, and more toward
industry and the individual enterprise. We can use various products of abroad for
globalization of market.
The reasons for globalization of markets are Falling barriers to cross-border trade have
made it easier to sell internationally and Tastes and preferences of consumers in different
nations are beginning to converge on some global norms, thereby helping
to create a global market.
 Globalization of production- explain with example

Answer: Globalization of production refers to the "sourcing of goods and services from

locations around the globe to take advantage of national differences in the cost and quality
of factors of production like land, labor, and capital".
Economic globalization involves trade, capital flows and the movement of labour, and an
important element in that process is the globalization of production. With the gradual dismantling
of trade barriers, and capital flows becoming easier, globalization of production has flourished. It
is no longer necessary to produce goods in one location. Even though a product may bear the
mark of being produced in a particular country, its components may come from different
locations. Particularly for high-tech products, research and development (R&D) is usually carried
out in developed countries, components are made in different countries depending on their
competencies, and the final assembly takes place in another country. This approach is also used
for labour-intensive goods such as garments, shoes, etc. For example, Apple produced their
product in the home country U.S.A but now they just research and developed their product in
U.S.A and total production process held in China because China’s factors of production is better
than china .China has plenty of expert engineers and labours to maintain production process
efficiently and maintain the quality of Apple’s products thar U.S.A have not. There are 2 reasons
of globalization of production:

 Gain cost advantage by producing in locations where cost of production is low.

 Gain quality factors of production and thus differentiate products.

 Is culture converging?
Answer: Cultural convergence is the theory that different cultures will be more and more like
each other as their interactions increase. Basically, the more that cultures interact, the more that
their values, ideologies, behaviors, arts, and customs will start to reflect each other. This trend is
especially pronounced between cultures that are heavily engaged with each other through
communication and transportation technologies, as well as organizational associations. Now a
days, cultural is converging for example:

Using Technology
Technology enables people from different countries to have immediate access to new ideas
and cultural identities. Small and large businesses across the globe use the Internet to interact
with a wide customer base. Adapting to customer interests and needs is a business necessity.
The use of technology such as computers, cell phones and the Internet encourages global
communication and provides opportunities for a fast-changing and evolving cultural
experience.
Accessing Language

The English language is a prime example of cultural convergence on a global

scale. English has become a main language of communication for people around
the world. Driven by economic realities, many countries have endorsed English
as a language that is necessary for their citizens to learn. Business leaders
realize that knowing English is a commodity that can mean financial gain. The
success and power of Western markets have contributed to this cultural
convergence. In many countries, English is taught to all school-age children as
part of the regular curriculum. At the same time, teaching English as a foreign
language in non-English-speaking countries has become a study-abroad and
career option for Americans.

Participative Politics
The political principles of democracy have seeped into different countries over time and
represent the ideology of cultural convergence. Political leaders from democratic republics
have encouraged other governments to explore the ideas of a democratic process.
Democracies have served as a role model for engaged citizenry and this has influenced
political change worldwide. For example, the Soviet Union, once a communist-ruled country,
fell apart in 1991. The citizens pushed for a new political process that is now considered a
form of democracy.

Celebrating Sports
A sporting event is a culture of its own. Sports bring together people from all cultures that
understand and appreciate the game. International events such as the Olympics, World Cup
soccer and other global competitions allow international interaction and celebration. Respect
for the sport and for the winner transcends individual differences and national boundaries,
and deepens appreciation for the players as athletes. International teams can be followed over
the Internet and television. Even spectators and players attending events in countries other
than their own are exposed to new ideas and customs.