Global Industries and the Need to Adopt Global Strategies

International Business
Student’s Name
Institutional Affiliation

International Business
Question 2
Globalization is a captivating spectacle that can be understood as a global system of connectivity and competition. However, globalization encompasses a range of political, social, as well as economic changes which accelerates the exchange of ideas and commodities worldwide. Over the centuries, societies across the globe have established progressively. However, global integration has increased drastic changes in the recent days. There have been unprecedented changes in transportation, computer technology and telecommunication networks, which have given access to the new impetus making the world more interdependent for industrial purposes (Pettinger, 2017). The multinational corporations are manufacturing goods and services in various countries and dispatching them for sale in most parts of the world. Circulation of cultures, ideas, technology, and raw materials is moving freely across national borders. As a result of globalization, companies have managed to operate in different countries which have led to increased international trade (Hirschhausen & Bitzer, 2000). I agree that due to various factors such as advanced technology, improved telecommunication networks, and unprecedented changes in technology, industries have expanded their business globally, hence the need to adapt to global strategies such marketing strategy, global labor strategy, and competitive strategies.
For example, firms such as McDonalds and Starbucks are now recognizable in various parts of the world. Moreover, integration increment has resulted in inequality. Without the electronic networks that project dominant cultural products globally then globalization becomes inconceivable. Advances in transportation, free-market ideology, and communication networks have led to an unprecedented mobility of commodities and capital. For example, taking advantage of plentiful and readily available labor in the south, the Northern countries want to establish global markets for their goods and services. These countries seek to use global financial institutions and local trade arrangements to induce undeveloped countries by lowering tariffs, enabling labor standards, and privatization of enterprises to expand their industries. Firms are becoming global due to improvements in transportation systems. Large cargo ships have minimized the cost of transportation from one country to another. Industries enjoy economies of scale which indicate that the cost per every item is reduced on a larger scale and thus the push for more industries going global (Kluyver, 2010). Effective transport also indicates that there is a fast mobility of people and goods. Secondly, the World Trade Organization (WTO) has promoted freedom of trade between countries which has helped to remove tariff barriers among countries. Additionally, the emergence of global blocks such the European Union, North American Free Trade Agreement (NAFTA), and Association of South Asian Nation (ASEAN) has also helped to reduce national barriers. This has allowed firms to expand their business in various part of the world to gain market share. In addition, mobile technology and the internet have made...