GLOBALIZATION

Globalization

Globalization

Introduction

Globalization is the term broadly as the process through which an ever-expanding free flow of goods, services, capital, peoples, and social customs leads to further integration of economies and societies worldwide. This phenomenon is hardly novel, albeit the process of integration has dramatically accelerated over the past few decades. The world has experienced successive waves of globalization.

Economic Globalization

Research confirms that a well-functioning market economy is indispensable in this era of globalization and that there are no viable alternatives to free markets. However, it is also recognized that to function effectively markets require transparent rules and institutions. A market economy supported by strong institutions and operating in a free democratic society is demonstrably the most effective form of economic organization (Hirst, 2001).

Globalization and American Corporation

Wal-Mart, the number one retailer in the world, would not have been likely to elaborate its market without a strong retail proposition. This design is based on reduced price strategy, broad variety of items, customer service, and community support. Really, Wal-Mart can play with reduced cost scheme because of its comparable whole margins and high inventory turnover. Reduced charges are accomplished by finances of scale, buying power, close vender relatives, effective data schemes and effective supply chain logistics. The notion works on the international and regional grade with the aim being to smaller costs, advance value, smaller prices and boost volume. The fast increase of Wal-Mart to the position of the World's biggest retailer appeared in a somewhat short time frame. Wal-Mart should recognize that it is new in globalization, in contrast, it powerfully accepts as true in its power which is the size and prices. Large scale of stores was conveyed to judge its intensity. Whereas, Wal-Mart used to relish its power in the United States, but this exceptional direct will not fit all (Owens, 2008).

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