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GLOBALIZATION. Patricio Benvenuto , Martin Buchanan, Nicolas Elsztain . What is globalization? Since when it exists? . Globalization is the process by which each countries economies in the world become integrated and start to be interrelated one from each other.

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globalization

GLOBALIZATION

Patricio Benvenuto, Martin Buchanan, Nicolas Elsztain.

what is globalization since when it exists
What is globalization? Since when it exists?
  • Globalization is the process by which each countries economies in the world become integrated and start to be interrelated one from each other.
  • Globalisation in the economic, social and political fields has been on the rise since the 1970s, receiving a particular boost after the end of the Cold War. Globalization went on the rise since 1970 due to three important reasons. Firstly, because of the increased free trade between countries after World War 2 due to the creation of the WTO and the NAFTA (North American free trade agreement). Secondly, because of the worldwide democracy, where events such the fall of the Berlin Wall and the end of the Soviet Union lead to have a more open society. Thirdly, because of capitalism, where the switch of many nations to market-based economies and capitalism has advanced globalization's reaches.
what lead to a globalize society
What lead to a globalize society?
  • The indicators that made me think that the worldwide society was globalizing was firstly, the increased interest that people had on other countries, mainly about economic matters. The second indicator was how the society languages were increased, making the society more than local, international. Another factor which made globalization rise was the low costs regarding communication and the internet. Now firms for example, due to the great improvements regarding communication, can outsource to countries which charge less amount of capital in wages. This outsourcing, or moving to other countries made employees from the central country of the firm move to an LEDC. Communication is essential to those employees to keep in touch with their close friends. In this way, people feel more close to each other by the use of the internet because at least, in the network they are communicating.
which are the factors that mainly contributed to the increased globalization
Which are the factors that mainly contributed to the increased globalization?
  • The first factor that contributed to the increased globalization is technology. This includes communication, the Internet, computers, etc. The dramatic improvement in communications during the second half of the twentieth century has especially helped globalisation and MNC´s. Falling airfares, the Internet, the fax machines, digitalisation and computers especially have meant that the movement of people and the transmission of information and ideas is easier and more cost-effective than ever before. Technology has reaped massive economies of scale and efficiency benefits for firms today, particularly as we live in an era where many things are computerised.
  • The second factor that mainly contributed to the increased globalization is the free movement of firms; more specifically globalisation has been led by the growth of Multi-national Corporations (MNC´s). They are such an integral part of globalisation that the sales of MNC´s such as General Motors and Ford exceed the entire gross domestic product of many countries. This multinational companies contribute to an increase in globalization because without them there would be far less trade and innovation. MNC´s have increased the amount of world output significantly and this has improved living standards thoughout. MNC´s create new jobs in other countries, giving rise to opportunity for the country they are operating in, and generating money for their own country.
real case study on globalization
Real case study on globalization

Santander is a Spanishbankwhichoperatesworldwide, leading in themarket of thefollowingcountries: Brazil, Spain, UK, México, Portugal, Germany, Chile, Argentina, Poland and USA. It has over 102 millionclientsovertheworld.

Thisbanktookoversomeyearsagothe Banco Rio in argentina, and addedtheprefixSantanter and lefttheend as Rio. This case shows howthebankisglobalising, sincetheprefix Santander isused in UK, Mexico, Portugal, Chile, Germany etc. Thisishelpfulforforeignerswhogoon a trip and can findtheirbankallovertheworld, givingtheinstitution trust and awarenesstothecostumers. The “Rio” added at theend of thenameisdueto a previousknown Bank in Argentina, making a changewhichwouldn`taffectcustomers of Banco Rio in a drasticalway, preservingtheculture and name of thepreviousbank; and introducingthemtothe new brand. Santander has adapted a financialservicetoeveryshareholder of thebank, theserviceinvolvesuniversities, corporations and littlefirms. Thisservice has beendevelopesthroughoutthewholeworld, creatingtheservicesheldbythebankglobalised. Byadaptingthisservicesthroughouttheworld, Santander achievedeconomies of scalesincethecost of creatingtheservices and therevenue of it, can bespreadedevenwithallthebranches, makingthe total costdecrease .

bibliography
Bibliography
  • http://answers.yahoo.com/question/index?qid=20080324070150AAvOfhH
  • http://www.santander.com/csgs/Satellite/CFWCSancomQP01/es_ES/Corporativo.html
  • http://www.ehow.com/facts_5291399_factors-leading-globalization-st-century.html
  • http://www.geography.ryerson.ca/michalak/geo910/Technological%20change.pdf
  • http://courseworkbank.info/courseworkbank.info.php?f=R0NFIEEgLSBMZXZlbC9FY29ub21pY3MvR2xvYmFsaXphdGlvbjMucGRm
  • Triple A