Globalization Market Globalization

1. 
   Globalization - the shift toward a more integrated and interdependent world economy
   
2. 
   The world is moving away from self-contained national economies toward an interdependent, integrated global economic system
   

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  Market Globalization.
  

Easier enter a foreign market

Global product

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  Production Globalization
  

Less cost of produce, low price

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  Historically distinct and separate national markets are merging
  
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  It no longer makes sense to talk about the “German market” or the “American market”
  
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  Instead, there is the “global market”
  
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    falling trade barriers make it easier to sell globally
    
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    consumers’ tastes and preferences are converging on some global norm
    
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    firms promote the trend by offering the same basic products worldwide
    
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  Firms of all sizes benefit and contribute to the globalization of markets
  
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    97% of all U.S. exporters have less than 500 employees
    
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    98% of all small and mid-sized German companies participate in international markets
    
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  Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like:
  
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    land,
    
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    labor,
    
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    energy,
    
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    capital
    
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  3 Companies can
  
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    lower their overall cost structure
    
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    improve the quality or functionality of their product offering
    
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