Globalization at the Industry Level
Why is important to focus on industries when examining globalization? Develop a listing of generic elements of a global industry (e.g., global customers). What are the industry drivers for global industry? The appliance industry produces products that are used in every country. Is it a global industry? Will the industry evolve like the automobile industry to the point that there are a small number of international firms present in all major markets? What are the global drivers? Would the drivers be different if we were examining the automobile industry instead of the appliance industry? How? Use concepts from the text and supplemental reading to support your answers.
Economic Development of Nations
Review Rostow's five stages of economic growth and categorize the following countries: Spain, U.S.A., Uganda, Brazil, and China. W. W. Rostow based his theory on the three economic sectors: primary, secondary, and tertiary. The globalization of nations reflects where a nation is in the development pattern. His theory includes the following levels:
- Traditional society - primary a subsistence economy in which agriculture is the most important industry; little trade beyond borders because production is consumed by producers.
- Transitional stage - surplus of production and emerging transportation system; opportunities for trade develop.
- Take off " initiation of industrialization with increased in manufacturing; focus on a few industries; social and political institutions developed to support industrialization
- Drive to maturity - growth increasing; innovation developing
- High mass consumption
What conditions must exist for the above countries move from one stage to another? Do countries regress through the levels? What would cause a country to regress? Use concepts from the text and supplemental reading to support your answers.