Globalization (or globalisation) describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade (Wikipedia).
Ten Drivers ('Flatteners' Friedman)
- Collapse of the Berlin Wall
- World Trade Organization (WTO)
- North American Free Trade Agreement (NAFTA)
- European Union (EU)
- Netscape (the Internet)
- Workflow software (collaboration software)
- Uploading (online projects)
- Reduce costs (labor, taxes, tariffs...)
- Improve the supply chain
- Provide better goods and services
- Understand markets
- Learn to improve operations
- Attract and retain global talent
- Supply chaining
- Informing (Google and search engines)
- The Steroids (wireless, VOIP, file sharing)
Companies typically pursue international business through one of four options:
- International strategy - uses exports and licenses
- Multi-domestic strategy - maximize local responsiveness by customizing both their product offering and marketing strategy to match different national conditions (Wikipedia).
- Transnational strategy - material, people and ideas cross (transgress) national boundaries. Attempts to combine benefits of global scale efficiencies with benefits of local responsivness (Heizer & Render, Wikipedia).
- Global Strategy - selling a standardized global product to provide standardization, learning and economies of scale (Wikipedia).
- Heizer & Render (2011). Principles of Operations Management, 8th edition, Prentice Hall, Upper Saddle River, NJ.
- Wikipedia: The free encyclopedia. FL: Wikimedia Foundation, Inc. Retrieved May 14, 2012, from http://www.wikipedia.org