International Business - Essay Example

Globalization has led to integration of global production (global sourcing and coordination between the diverse locations) and integration of global markets (the rise of global brands and international distributors). Ultimately, globalization yields to increasing: culture convergences; interdependence among states economic integration; trade liberation; and, global capital markets (Hill 2012, p.4). Globalization of markets Globalization of markets delineates the progression witnessed in the assimilation and amalgamation of different world markets into a shared market.

This means that national markets are increasingly amalgamating into one vast marketplace. This process eventually yields to the adoption of common products or services propelled by the resultant cultural shift. . The growth of national companies such as Coca Cola and MacDonald’s into larger global organizations has drawn attention to the fact that global companies can now be able to synchronize their operations across continents, yielding to enhanced efficiency and attainment of economies of scale.

One of the paradoxes of globalization that can be highlighted details that technology has fostered the efficient delivery of standardized products, as well as promoting diverse forms of tailored products for various markets; however, the registered growth of global markets has been highly prevalent within sectors that depend on standardized products for all clients. Markets for consumer products, on the other hand, have not been homogenized as anticipated (Reinert 2000, p.42). The positioning numerous markets, especially within advanced economies have increasingly been reversed as imports of standard products are frequently cheaper compared to the local equivalent.

Hence, domestic manufacturing companies are increasingly struggling to match the multinationals that enjoy economies of scale, in addition to, massive resources. Globalization of production The factors that impact on the situating of an entity’s manufacturing infrastructure usually vary between countries, and may be complementary in a foreign country relative to the host country. This means that entities are persistently placing their individual productive operations at highly rewarding global locations (Hill and Jones 2007, p.265). As such, it is becoming immaterial to label various products as ‘Japanese,’ ‘American,’ German,’ or ‘British.

’ This derives from the breaking down of the manufacturing process into separate stages in which each phase takes place within the most