Globalization is a shift toward a more interdependent and integrated world economy (Hill, 2009). The globalization of markets and the globalization of production are several factors of globalization. Advances in transportation and telecommunications make it possible for businesses to reach other countries. National economies are merging and material culture looks the same no matter where an individual is in the world. Mercantilism, absolute advantage, comparative advantage, new trade theory, Heckscher-Ohlin, product life-cycle, and national competitive advantage are all international trade theories.
Drivers of Globalization One driver of globalization is the declining trade and investment barriers.
Many decades ago, strict barriers to international trade and direct foreign investment existed (Hill, 2009). The World Trade Organization (WTO) was established to help countries work together in an effort to cut tariffs on industrial services, goods, and agriculture. The other driver of globalization is technological change. Advances in information processing, transportation, and the Internet have evolved since World War II (Hill, 2009). The microprocessor is the single most important innovation in technology.
Microprocessors encode, transmit, and decode information. The rapid expansion of the Internet has become the information backbone of the global economy (2009). The Internet makes it easy for buyers and sellers to conduct business without having to leave their home or office. Transportation technology has advanced with the development of containerization, superfreighters, and commercial jets. Commercial jets have reduced the time it takes to get from one place to another and containerization has lowered the cost of shipping goods around the world.
* Effects of Globalization on Community The values and norms of an individual’s culture are influenced by social structure, language, religion, and education. Class-conscious societies are characterized by low social mobility and a high degree of stratification while less class-conscious societies are characterized by a low degree of stratification and high social mobility. Language has spoken and unspoken dimensions and countries with more than one language have more than one culture. Formal education is a way individuals are socialized into the values and norms of a society through learned skills. Religion is a system of shared beliefs and rituals.