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Themes of Globalization - Essay Example

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This study looks into the term Globalisation, which is probably one of the most debatable issues of today. The world we have around us is transforming into a complete Global Village. The term "Global Village" refers to the widening of the global system…
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Themes of Globalization
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Download file to see previous pages ‘Globalization is also referred to as the tendency of firms to extend their sales ownership and /or manufacturing to new markets abroad. For example. Toyota produces Camry in Kentucky; While Dell produces and sells Pc’s in China. Free Trade areas – agreements that reduce tariffs and barriers among trading partners further encourage international trade. NAFTA (the North American Free Trade Area) and the EU (European Union) are examples. Doing Business internationally today is big business. For example, the total value of US imports rose from $799 million in 1994 to $135 billion in 2003; Exports rose from $72 billion to $88 billion in the same period. More globalization means more Competition and more competition means more pressure to be ‘World Class’. That is to lower costs and to make employees more productive. An s one expert puts it ‘ the bottom line is that the growing integration of the world economy into a single, huge marketplace is increasing the intensity of competition in a wide range of manufacturing and service industries’.(Dessler:2005)
Dixon Ticonderoga is a victim of Globalisation. Dixon has owned one of the oldest public companies of pencil manufacturing in the U.S. His company has enjoyed a long period of success. That halted in the 1970’s. That only because China had started dumping their pencils in the U.S market at cheaper rates. And it was only after some time that the duties were imposed on the imports which raised the prices.
This helped Dixon’s company to make profits again, but then the Chinese kept making better cheaper pencils and as a result after a few years, the imports returned to the high level they were at, before the imposition of duties. Dixon in the meantime was trying rigorously to meet this foreign competition on price.  ...Download file to see next pagesRead More
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