Globalization

In our book globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has two main components, first is the globalization of markets, and second is the globalization of production. The Globalization of Markets: moving away from an economic system in which national markets are distinct entries, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global …

…winning a greater share of total orders for aircraft than its global rival, Airbus. Boeing also outsourcers some production to foreign countries to increase the chance that it will win significant orders from airliners based in that country. We are moving toward a future characterized by the increased globalization of markets and production. Modern firms are very important in this because their very actions increased globalization. Reference: International Business, 3rd edition Charles W. L. Hill, 2000