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Understanding Globalization: Its Definition, Features, and Implications

Globalization of Production

o Movement of products, people, money, companies and information across national boundaries,

Movement of products, people, money, companies and information

o Globalisation of production

 • MNEs ability to locate different stages of production in a variety of locations globally

 • Based on the value chain, which envisages successive stages of production, each adding value to the finished product

o Globalisation of markets

 • MNEs ability to serve customers with their products around the world

 • Ability to adapt to differing needs in differing countries

Your Everyday Life:

• Wake up to a GE alarm clock made in China

• Slip on Adidas sandals made in Indonesia

• Put your Superdry clothes on from China and India

• Unplug your Nokia phone made in the U.S. and Taiwan

• Hop into your VW made in Poland

• Listen to Coldplay from England

• Grab a Starbucks coffee with beans harvested in Columbia

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