International Business

9 Pages 2189 Words

The term Globalization was first coined in the 1980’s. However, the definition of globalization varies in cultural, economical, environmental, political and social studies. According to Williamson, globalization in economical studies refers to an increasing integration of the global economy through factor and product markets by way of direct investment, financial flow and trade greatly aided by the deregulation of markets as well as the liberation of capital movement and trade (Williamson 1998,1). It is a driving force that is expected to affect the countries well being in terms of trade, employment and income as well as the values of dollar in relative to other currencies and so on. Based on a study on the globalization’s rankings in the world, New Zealand is currently rank at number 23. (Graham, Crocombe. Michael, Enright and Michael, Porter 1991,12) In the following paragraphs, there will be an explanation how the globalization affects the New Zealand’s trade with other countries, especially for multinational company’s competition in international trade, employment opportunities for New Zealanders and some reasons which are beneficial and harmful to New Zealand as a whole as well as some policies that should be taken into consideration by other businesses and the government in order to benefit from it.

According to the definition of globalization above, it also is simply to understand that globalization refers to the shift a more integrated and interdependent world economy. Globalization has two main components: the globalization of markets and the globalization of production (Charles, Hill 2003,6).

The globalization of markets means each the merging of distinct and separate national markets into one huge global marketplace. Each country can sell its products internationally by falling trade barriers. It provides a chance for local companies to compete in international trade by offering qualified goods and services. Wh...