Chapter 4, Problem 1UTC

Summary Introduction

To determine:

Three important developments in globalization.

Answer to Problem 1UTC

Solution:

The answer explains three important developments in globalization.

Explanation of Solution

Important developments in globalization

Globalization is the process by which national and international markets of the world economy are integrated. The developments are:

1. The rise of the global village
The world is becoming one village through the use of electronic media. The digital age has formed new social structures within the context of culture. Many global villages are emerging leading to the world growing culturally larger and more complex. The time and space between different countries have shrunk and the electronic media has made it easier for the people all around the world to communicate with one another. Everything has become instantaneous and the social spheres has greatly expanded by the advanced digital technology. Different cultures have been able to connect with each other which has made trade in different cultural areas easier.
2. Global Economy (one big world market)
The world becoming one big market instead of many national ones. The global economy is the economy of the world and is considered as the international exchange of goods and services. The economies of the world are interacting with one another as one big market and not as small separate national markets. Despite the differences in geography and cultures, globalization has increased trade and business internationally uniting the economy of the world.
3. E-commerce
There has been trouble-free and simple buying and selling of goods and services through computer networks because of globalization. The global connectivity has led to less restrictions by physical borders and consumers access to different markets have expanded. E-commerce is creating ample opportunities for businesses to benefit from the new emerging markets. It has increased the international competitiveness which eventually leads to better customer satisfaction. Local businesses now have an opportunity to enter international markets to grow their business and gain better profits.

Conclusion

The three important developments in globalization are rise in the global village, global economy, and e-commerce.