Definition of Globalization

Globalization has been described as "a multifaceted phenomenon which (sic) encompasses economic, social, political, technological and cultural dimensions" (Mir, Hassan & Qadri, 2014). Economically, socially, politically, the world has become more interconnected. Some of these processes, such as the development of the Internet, have occurred organically while others, such as free trade agreements and the rise of the supranational governmental entities, are more deliberate in nature. They all, however, contribute to the same phenomenon. Globalization is driven by phenomenon that remove barriers around the world.

Air travel and other transportation innovations allow for people and goods to move more freely around the globe. Innovations in communication allow us real time communication with anybody, anywhere, at any time. As a result, information flows more freely. Politically, the world has become more interconnected. The process of decolonialization was matched by a concurrent move to create supranational entities such as the European Union and the United Nations, NATO, and other bodies, to facilitate and govern international cooperation on a number of different issues.

These bodies have reduced the political barriers between nations, as has the pragmatic drive for the improvement of trade. While transportation and communication have played a role in increased trade, other factors have as well. On the organic side, the migration of people has driven substantial trade around the world. The world's global cities as hubs, filled with people from all corners, engaged in the conduct of business.

In many such cities, people immigrate, but bring with them the political and economic connections from home that spur the globalization of trade even further. On the deliberate side, nations have sought to reduce trade barriers, and engage in trade missions with one another, in an effort to grow their economies by tapping into the benefits that trade offers.

Where twenty years ago, there were only a handful of free trade agreements, today there are dozens, most nations are in the World Trade Organization, expressing commitment to further reduction in trade barriers. And where there is opportunity, there is going to be action. These forces that reduce the barriers to the movement of goods, capital and even people have enabled globalization to take hold in a way that could scarcely be imagined a hundred years ago.

While for most of human history, major trading cities were multicultural hubs, but the pace of these movements was still fairly slow. It is the rapid pace, and ease with which things happen, that makes modern globalization such a powerful, defining force in the development of human society. Companies Not all companies thrive in a globalized world. The lowering of barriers creates opportunity, but it also creates threats. Companies are no longer competing with their neighbors, but they are competing around the world. Coca-Cola is a famous globalization success story.

While this company was successful in North America for decades, it was an early adopter of globalization, marketing its formula first in Europe and then around the world, to the point where it is now sold everywhere except for North Korea. The company's global move actually began after the Second World War, where it had been introduced to meet the demands of American troops. It remained in Europe, capitalized on the common market, and began expanding around the world from there (Hymson, 2011).

Coca-Cola was able to build a strong brand, and use its size to muscle out local competitors. With a scalable business, built from a strong, large local base, Coca-Cola was not only well-positioned to globalize, but moving first gave it significant advantage. But not all companies thrive. A company like General Motors has struggled with globalization. GM does have markets around the world, but North America was the core of.