Making Globalization Work - Essay Example

For the case of an international company, it brings about movement of capital and integration of financial market thereby facilitating globalization. There are a number of globalization drivers that include: market, government, cost, and competitive drivers that facilitate globalization. In market globalization drivers, it entails the global customers, common customers' needs, global market channels, and transferable marketing. In cost globalization divers it entails the factors of production differences in different areas, high product development in some areas, rapidly changing technology, global scale economies, and sourcing efficiencies.

In government globalization drivers, it entails common market regulations, unrestrictive trade, and investment policies, and compatible technical standards. When these factors are harmonized in the world, they facilitate globalization. Finally, the competitive globalization driver entails interdependence among countries in terms of management, policy, and trade/investment link. It also involves global competitors and two-way trade. Globalization effects are felt in different perspectives depending on the impact it will have as a whole.

Inflation effects are felt due to globalization meaning the monetary policy is greatly affected. For example an organization like a school, globalization effects are felt as a result of inflation since the school fees rise; the prices for books rises and teacher tend to demand more salaries due to high cost of living as a result of inflation. There is a social effect that is felt in our schools as a result of globalization. Most of the students tend to import deviant behaviors from other societies such as the use of illicit drugs and even the mode of dressing.

The economic effect on the other hand is felt as a result of globalization. We find that our school's education standard increases as a result of using technology. This in turn produces learned citizens that contribute toward building our nation. Regional trading blocs are large free trade area that is formed as a result of the common tariff, tax, and trade agreement. Some of the regional trading blocs include North America Free Trade Agreement (NAFTA) and Central America Common Market (CACM).