Define globalization, and describe some of its consequences.

Question

What will be an ideal response?

Answer 1

Globalizationis the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders.  ?Globalization increases the range of opportunities for companies.  Firms engaging in globalization of their operations must make culturally sensitive decisions.  Globalization has led to higher performance standards in many competitive dimensions, including those of quality, cost, productivity, product introduction time, and operational efficiency. In addition to firms competing in the global economy, these standards affect firms competing on a domestic-only basis.  Thus, managers have to learn how to operate effectively in a "multi-polar" world with many important countries having unique interests and environments. Firms must learn how to deal with the reality that in the competitive landscape of the twenty-first century, only companies capable of meeting, if not exceeding, global standards typically have the capability to earn above-average returns. The risks of participating outside of a firm's domestic markets in the global economy are labeled a "liability of foreignness."??