BA 3340 Lecture Notes - Lecture 6: Outsourcing, Representative Democracy, Geert Hofstede
Document Summary
Globalisation is the shift towards a more integrated and independent world economy. Globalisation of markets is the merging of historically distinct and separate national markets into one global market. Falling barriers to trade have made this process easier. Without wto, formerly gatt, globalisation of markets and production is unlikely to proceed as far as it has today. Globalisation of production is the process of sourcing goods and services from locations with advantageous factors of production. Facts of production are the components of producing a product, such as energy labour, land, and capital. Advances in technology, namely logistics and telecommunications, have made this a viable possibility. Companies must be careful to not overlook other factors when attempting to create a global product. Advancements in technology and falling trade barriers are the drivers of globalisation. By continually researching and upgrading technology such as logistics, infrastructure, and transport while allowing trade barriers to fall; globalisation can continue to spread.
