Starbucks: Globalization Theory and Global Accounting

Globalization theory and global accounting
Student:
Professor:
Course title:
Date:
Globalization theory and global accounting: Starbucks
The global economic environment has altered greatly ever since the 1970s partly because of alterations in both the political and business climate wherein businesses operate. Some of the factors which influence the international political and business climate are (i) the emergence of more market-based economies; (ii) increasing competition amongst businesses operating in various nations; as well as (iii) quick improvements in information technology.In response to the flow of fiscal capital internationally, global and national and regulatory authorities, and standard-setting groups have endeavored to create a process for forming high-quality International Accounting Standards (IASs) which could be applied similarly and consistently globally. Globalization is basically understood as the process of interaction and integration amongst the corporations, people, as well as governments of various countries. The globalization process is driven by international investment and trade, and assisted by information technology. It is of note that this process has a significant effect on the political systems, culture, economic development and prosperity, environment and on human physical well-being in different societies throughout the world. Through globalization, there is a development of a progressively more integrated international economy marked particularly by free flow of capital, free trade, as well as the tapping of inexpensive foreign labor markets.
Starbucks is the leading coffeehouse corporation worldwide; having more than 20,300 stores in over 49 nationswhich makes it an icon of globalization. Through globalization, Starbucks has turned out to be one of the most well-known house-hold corporations. A person can travel from Russia to Egypt to the United States to Spain to Australia to China to Macau to Mexico all without missing their preferredand favored coffee drink thatthe company has to offer. It is noteworthy that Starbucks has developed into an international brand through its word-of-mouth communications as well as customer loyalty. The Starbucks Effect has affected every coffee distributor since they are all presently competing for Starbucks' customers. The corporation has brought a novel notion to what coffee is, which has allowed Starbucks to be so successful in the international marketplace. From the rich taste in any variety that the customer wants, the laid-back atmosphere, and the strong coffee smell, customers of Starbucks know the difference between Starbucks coffee experience and ordinary coffee experience.Even though technically an American name, Starbucks name is spoken and known by persons regardless of the language they speak or where they come from. The company did not rise to the top just by chance; it did so by protecting its name which it fought very hard to establish, through differentiation from the competition, and through acquisitions.
As regards developing an international set of high-quality standards, a number of criteria would have to be taken into consideration when evaluating the acceptability of proposed International Accounting Standards. As per the Se...