Globalization entails the integration of social, economic and political factions in the world. It has mainly resulted from a changed worldview that has driven by technological advancement and innovations. Advances in transport have increased the volume of international trade. The setting up of multinational companies has ensured a global presence of monopolies that controls a greater percentage of world trade. A country can specialize in producing goods and services where it has a comparable and competitive advantage. The use of internet makes communication easy and fast for easy trade. The four aspects that constitute globalization are investments, capital inflows, transactions, and commerce (Hitt, Ireland & Hoskisson,2017). The movement of skilled labor and dissemination of knowledge across different jurisdictions is a result of globalization. Globalization comes with a cost both to the environment and to the businesses.
Products Country of Origin
Sporting goods Germany
Food items China
The map below shows the four countries where Bozeman import several products. The part in green represents china which produces much of the food items used in Bozeman. Green represents Germany where sporting goods are imported. Blue colour is Turkey where clothes are made while the Rose colour represents Japan the main manufacturer of cars used in Bozeman
From my analysis of the products near me which ranges from: cars, food items, clothing, entertainment, websites, sporting goods and other miscellaneous products. These products have either been manufactured by a multinational company with a world presence and establishments in many countries. Most vehicles I see in Bozeman are imports from Japan. The material used to produce clothes are sourced from Turkey and China. There are some parts of various machinery that the United States import from other countries to be assembled in the local economy. Toyota enjoys a 35% market share of the automobile market in Bozeman (Sjursen, 2013, p.81).
Toyota is a multinational headquartered in Tokyo, Japan but has several branches across the world to enable proper customer service. Most of the cars the company manufacture targets the middle class. Most of the food products consumed in Bozeman are either McDonald’s or KFC. The two companies enjoy a 70% market share. Most of the websites contain both local and international content. Facebook dominates and Twitter dominates the social networking sites. LinkedIn can be accessed in many languages and help professionals to network. American multinationals seem to dominate the technological sectors while Asian economies dominate the production frontier. European economies are good in lifestyle products (Sjursen,2013). Most of the sporting goods in Bozeman are made in Europe. In my analysis, most of the goods sold in America are imported, and most products and services produced in America are exported courtesy of globalization.
There is a great connection between Bozeman economy to that of Germany, China, and Japan. The two economies are highly advanced and use modern technology for efficient production. These economies have specialized in trading those goods and services they can produce with ease. Bozeman makes a significant portion of the American economy and can generate high incomes. There is a disconnection in the politics of Bozeman and that of China. Bozeman is more democratic with a free market economic system, but China has a mixed economy controlling a significant portion of its entire system. Prices in Bozeman, Germany, and Japan are determined by interpersonal forces of demand and supply unlike in China where the economic authorities fix them. The reason for this disparity results from different economic and political systems among the two countries.
Globalization will help in shaping Bozeman’s both today and in the future. The economy has to adapt to modern, efficient production methods for Bozeman to remain relevant in the competitive world. The authorities in Bozeman need to pass legislation aimed at protecting domestic industries from unfair competitions and cheap products from the global market. As a result of increased trade, the economy of Montana will increase. Since globalization entails interacting with people from diverse regions the culture of Montana will be more social to accommodate different views and practices. There will be a better exchange of goods and services at affordable and market friendly prices (Sjursen,2013). Montana will have good diplomatic relations with countries it trades in. The cultural exchange will provide sustainable links suitable for global networking. Globalization will make it easier for Montana to join the world in solving common problems in climate change, trade, and terrorism.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness & globalization: concepts and cases. Boston, MA: Cengage Learning.
Sjursen, K. (2013). Globalization. Bronx, N.Y: H.W. Wilson Co