Inglés para comercio internacional I Week 2

Definition of globalization

Economic globalization refers to the increasing interdependence of world economies as a

result of the growing scale of cross-border trade of commodities and services, flow of
international, capital and wide and rapid spread of technologies.

Corporations gain competitive advantages on multiple fronts through globalization, the

globalization can reduce operating costs by manufacturing abroad, buy raw materials more
cheaply because of the reduction or removal of tariffs, and most of all, they gain access to
millions of new consumers, thus, globalization is a social, cultural, political and legal
phenomnon

1.Globalization is the spread of products, technology, information and jobs across national and
international borders and cultures.

2. In economic terms, it describes an interdependence of nations around the globe fostered

through free trade.

3. Globalization could be:

a. Social: When it leads to greater interaction among several populations.
b. Culturally: Globalization represents the exchange of ideas, values and artistic expression
among cultures, globalization also represents a trend toward the development of a single
world culture.
c. Politically: Globalization has shifted the attention to intergovernmental organizations like
the United Nations and the World Trade Organization.
d. Legally: Globalization has altered how international law is created and enforced.

4. On one hand: Globalization has created new jobs and economic growththrough the cross-
borders flow of goods, capital and labor.

5. On the other hand: This growth and job creation are not distributed evenly across industries
or countries.

Factors of globalization are: a. Containerization: The costs of ocean shipmenthave come

down, due to containerization, bulk shipment and other efficiencies.

b. Technological change: Quick and sustained technological change has reduced the cost of
transmitting and communicating information, sometimes known as the death of distance.

c. Economy of scale: Many economists believe that there has been an increase in the
minimum efficient scale associated with some industries.

d. Differences in tax system: The desire of businesses to benefit from lower unit labor costs
and other favorable production factors abroad has encouraged countries to adjust their tax
system to attract foreign direct investment.

e. Less protectionism: Old form of non-tariff protection such as import licensing and foreign
exchange controls have gradually been dismantled, borders have opened n average and
import tariff levels have fallen.
f. Growth strategies and transnational and multinational companies: In their pursuit of
revenue and profit growth, increasingly global business and brands have invested significantly
in expanding internationally.

5. This is a particular case for business owning brands that have proved they have the
potential to be successfully globally.

6. Particularly in faster-growing economies fuelled by growing numbers of middle class

consumers.

7.Although globalization is basically an economic activity, it is influenced by other many

factors, it is said, factors influencing globalization are as follow:

a. Historical

b. Economic

c. Resources and market

d. Production issues

e. Political

f. Industrial organization

g. Technology.

Vocabulary

Average: Promedio, medio Customs: Aduanas

Brands: Marcas Customs broker: Agente de adua

Bulk: volumen, masa Tax collector: Recaudador de impuest

Containerization: Embarque en =s contenedores Freight: Flete, carga

Cross-border: Más allá de la frontera Freight forwarder: Empresas especi

Dismantled: Desmontado, desmantelado Goods: Mercadería, productos

Efficiences: Eficacias Handling: Manipulación y manejo

Enforced: Reforzado Handling fees: costos por manejo

Evenly: Imparcial, igualmente Insurance: Seguro

Fostered: Promovido, fomentado Packing: Empaque, embalaje

Pursuit: Búsqueda, persecución Invoice: Factura, facturar

Revenue: Rentas públicasExchange: Intercambio

Shifted: Cambiado Life insurance: Seguro de vida

Spread: Propagación Extender Handling fees: Costos por manejo

Trend: Tendencia de mercancías