What is globalization?

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[...] Chinese annual exports tripled in 10 players 2.4 trillion in 2015). We can observe significant patterns in today's trade flows : the integration of Asia with the US and Europe: most of world trade is made within the Triad the integration of Emerging Europe with the EU, but not so much with other regions the integration of South America with North America, but not so much with other regions the enormous commodity-driven surplus that the Middle East runs with Asia the relative isolation of Sub-Saharan Africa developing countries are catching up, especially in Asian countries there are intra-regional trade flows most components of a Volvo car are made in Europe when most components of a Subaru car are made in Asia) Foreign Direct Investments (FDI) Foreign Direct Investments have soared since the 1990s (13 billion $ in 1970 and 1,800 billion $ nowadays). [...]

[...] Why does a country export instead of focusing on the domestic market? The high fixed costs request a wider market to reduce the variable costs of production (economies of scale). Markets being more open make the improvement of competitiveness possible for a company to get better fiscal conditions, fewer constraining regulations and cheaper labor costs (offshoring and outsourcing). A more uniform World demand Globalization of trade, transports, information and communication leads to a certain standardization of tastes and consumption over the world. [...]

[...] What is globalization? Globalization is the process by which available goods and services, or social and cultural influences, gradually become similar in all parts of the world. It is the increase of trade around the world, especially by large companies producing and trading goods in many different countries. It is the way in which economies have been developing to operate together as one system, the process of development of international exchanges: of goods, services, investments, information, migrations. Globalization is an increasing interconnection and interdependence of people, businesses and countries over the world. [...]

[...] Trade is nowadays even easier thanks to the implementation of international and regional institutions such as free trade areas, customs union or single markets. Customs tariffs are now quite low almost everywhere in the world. Most of the people in the world live under free trade agreements. The rise of free trade is an opportunity to set up on news markets and expand worldwide, but it also increases competition. The search for lower costs Why does a country import a kind of good instead of producing it itself? [...]

[...] The decreasing cost of communication intensified globalization, for example the cost of a call between New York and London fell by 97% between 1930 and the early 2000s. Also the number of internet users triplicated over the last 15 years mostly because of the internet transit price getting cheaper and the development of networks. The rise of Free Trade Historically, globalization took a different turn since the 1980s with neoliberal economic theories applied by country leaders such as Margaret Thatcher or Ronald Reagan who initiated progressively the dismantling of customs barriers between developed countries decrease of average tariffs. [...]