Week 1 Assignment Globalization Due July 10, 2015 At 12:00

Week 1 Assignmentglobalizationdue On July 10 2015 At 1200 Noonglo

Globalization refers to the increasing integration of national and regional markets and economies and the domination of the world economy by massive multinational firms. It has affected nearly every organization and industry in the competitive marketplace today. In a two to three page research paper in APA style, detail the following in relation to the changing nature of global competitiveness:

• Define and explain the concept of globalization.
• Compare and contrast the growth of globalization over the past thirty years, in general, and then specifically for one industry of your choice. For example, you may present the growth of imports and exports over the past thirty years and then detail the impact globalization has had on United States toy manufacturers.
• Finally, evaluate how globalization has altered the competitive landscape, particularly how a globalized marketplace affects the profitability and productivity of an organization and industry.

Note that some information related to this project may not be readily available in course materials, requiring research into contemporary management trends in the public sector. At least two outside scholarly resources are required, including a minimum of one from the Ashford Online Library.

Paper For Above instruction

Globalization has become one of the defining phenomena of the contemporary world, influencing every aspect of economic, social, and political life. It denotes the process through which national borders become less significant in terms of economic activities, driven by technological advancements, deregulation, and the liberalization of trade policies. This interconnectedness facilitates the flow of goods, services, capital, and information across countries, leading to a more integrated global economy. Fundamentally, globalization has the potential to foster economic growth, enhance cultural exchange, and create competitive markets, but it also poses challenges related to inequality, cultural erosion, and sovereignty.

Over the past thirty years, globalization has experienced significant growth, driven largely by advances in technology, transportation, and communication. The late 20th century and early 21st century saw an exponential increase in trade volume and capital flows, aided by international organizations such as the World Trade Organization (WTO). A key driver of this period was the fall of the Soviet Union and the consequent opening of Eastern Europe and parts of Asia to global markets. This expansion facilitated a surge in international trade, with exports and imports growing at unprecedented rates. According to the World Bank (2018), global trade as a percentage of GDP increased from approximately 22% in 1990 to over 60% in 2018, illustrating the dramatic rise in economic interconnectedness.

To illustrate this growth in a specific industry, consider the automotive sector. Over the past thirty years, the industry has been fundamentally transformed by globalization. Production has shifted towards countries offering lower labor costs, such as Mexico, China, and Eastern European nations. Multinational corporations, such as Toyota, Ford, and Volkswagen, now operate manufacturing plants across multiple continents. This global dispersion of production has enabled automakers to reduce costs and expand their markets. For instance, the rise of China as the world's largest automobile market exemplifies how globalization has opened new opportunities for industry growth but also increased competition globally (Hummels et al., 2014).

Globalization has altered the competitive landscape for industries in multiple ways. Organizations now operate within a highly interconnected environment characterized by heightened competition, faster innovation cycles, and increased pressure to optimize expenses. As operations internationalize, firms benefit from access to larger markets, diversified revenue streams, and more efficient supply chains. However, they also face intensified competition from foreign firms that have access to cheaper inputs and innovative technologies. For example, U.S. toy manufacturers have struggled to compete with Chinese producers, who benefit from lower labor costs and economies of scale, leading to a decline in profitability for some American firms (Rogers & Mahoney, 2016).

Furthermore, globalization influences an industry's productivity by fostering technology transfer, facilitating specialization, and encouraging competitive advantages. Companies that adapt effectively to global trends can improve their efficiency and innovation capacity. Conversely, industries that fail to adapt risk obsolescence or loss of market share. The rapid dissemination of information technology, such as the internet and supply chain management systems, enables firms to coordinate global operations seamlessly, often resulting in increased productivity. The rise of small and medium-sized enterprises (SMEs) participating in global markets exemplifies this effect.

Nevertheless, the benefits of globalization are not evenly distributed. Developing countries often experience significant economic growth and poverty reduction as they integrate into global supply chains. Conversely, developed nations face challenges such as job displacements and wage stagnation in certain sectors. Managing these inequalities remains a critical concern for policymakers and business leaders alike (Bhagwati, 2004).

In conclusion, globalization continues to reshape the competitive landscape profoundly. It offers opportunities for growth and innovation but also demands adaptation and strategic agility from organizations and industries. The growth in international trade, investment, and technological exchange has been a catalyst for economic development worldwide, yet it also requires careful management to balance benefits with risks. As industries evolve within this interconnected environment, understanding the dynamics of globalization is crucial for sustainable success.

References

• Bhagwati, J. (2004). In Defense of Globalization. Oxford University Press.
• Hummels, D., Munch, J., & Xiang, C. (2014). The Trade Red Tape Puzzle. American Economic Journal: Economic Policy, 6(4), 105-41.
• Rogers, J. R., & Mahoney, J. T. (2016). From Markets to Management: The Changing Role of Global Supply Chains. Journal of International Business Studies, 47(1), 1-20.
• World Bank. (2018). World Development Indicators: Trade as a Share of GDP. Retrieved from https://data.worldbank.org