COMMERCE 4SA3 Chapter Notes - Chapter 1: International Monetary Fund, Money Market Fund, World Trade Organization

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4SA3
• Professor: Linda Stockton

Document Summary

Globalization: the shift toward a more integrated and interdependent world economy. Several different facets: globalization of markets, the globalization of production, and the globalization of consumers. Globalization of markets: the merging of historically distinct and sperate national markets into one huge global marketplace. The tastes and preferences of consumers in different nations are beginning to converge on global norm. By offering standardized products worldwide, companies help create a global market. As firms follow each other around the world, they bring assets such as marketing strategies, and brand names with them thus creating homogeneity across markets, reducing diversity. Globalization of production: sourcing goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production (labour, energy, and capital). End goal= lower their overall cost structure or improve the quality or functionality of their product offering therefore increasing competitivity.