Globalisations Impact on Fashion and Garment Industry - Dissertation Example

Since the 1970s, globalization has increasingly become a “catchphrase” symbolizing an extensive interdependence between states (Gereffi, Humphrey, Kaplinsky, & Sturgeon, 2001, p. 2). Advances in technology together with the growth of bilateral and multilateral trade agreements have removed or lowered significant barriers to international trade, including the costs of trans-border trade (Urata, 2002). The Internet has introduced a new method for the simultaneous distribution of information, products, and services across borders.

Consumers are now in a position to obtain information and purchase products and services with the mere “click of a mouse” (Dierks, 2001, p. 14). As Dierks (2001) points out, the Internet together with e-trade and e-commerce is “transforming entire industries” (p. 14).According to Knight (2000), one of the main consequences of globalization is the internationalization of firms. Globalization has brought with it an interconnectedness and interdependence of global economies, which in turn has resulted in firms using marketing and trade strategies to become internationalized (Knight, 2000).

For the purpose of this study, the working definition of globalization is:.the process in which more and more people become connected in more different ways across larger distances (Lechner, 2009, p. 15).Internationalization for the purpose of this dissertation takes on the broad definition in which the concept is defined as “the process of increasing involvement in international operations” (Welch & Luostarinen, 2006, p. 84). In other words, internationalization is a conscious business strategy while globalization is a process that impacts the way that firms do business.

Globalization is the integration of markets and economies and the resulting liberal movement of people and goods across borders. Internationalization is specific to firms who make the decision to enter international markets.As a result of rapid globalization together with the rapid advances in technology, the consistent removal of trade barriers, and increasing mobility of people, services, and cash, the competition to become internationalized has increased. In this regard in this era of globalisation, internationalisation has become a critical “strategy for continuous growth” for all players in the global markets including small and young business firms (Etemad & Ala-Mutka, 2009).

The Internet has emerged as an instrument for “rapid globalization” (Segal-Horn & Faulkner, 2010, p. 120). Under the concept of “born global” companies can acquire global reach via the Internet within two years of starting a business (Segal-Horn & Faulkner, 2010, p. 120).