HISTORY OF GLOBALIZATION

• International business has existed in some sense since prehistory, when flint banks, ceramics, and other goods were traded cross great distances. Even during the Roman Empire, traders carried goods to consumers around the world.
• However, multinational enterprises-as we know them today-were great rarities until the 19th century. By then, U.S. companies like General Electric, International Telephone and Telegraph, and Singer Sewing Machine Company had started to invest in overseas manufacturing facilities, as had West European companies like Ciba, Imperial Chemicals, Nestle, Siemens, and Unilever.
• When World War II ended, the United States was the only major country that had not been devastated by war. The size of the U.S. economy had almost doubled during the war, and the U.S. dominated the world economically, politically, and militarily. In this scenario, many U.S. firms started making substantial direct investments in foreign primary industries such as oil products and mining
• Technological development and product design remained focused on the United States market at home. American-owned multinationals generally viewed the rest of the world as a source of raw materials, cheap labor, and supplemental markets.
• In the mid-1950s, U.S. companies started to make substantial direct investments in foreign manufacturing facilities. In the 1960s, it was American service firms-banks, insurance companies, marketing consultants, and the like that expanded overseas.
• In time, however, as purchasing power increased abroad, especially in Europe and Japan, their domestic product prospered. Eventually overseas producers expanded beyond their national boundaries, entering the international marketplace. Although these foreign competitors initially relied on U.S. technology, lower costs eventually gave them a competitive advantage.
• Today, they have taken the initiative in developing and improving technology, and this has furthered their competitiveness (Palmer, 1997 as cited by Abelos, et al., 2006, pp. 87 - 88)
• Western Europe's firms-particularly in such industries as chemicals, electric gear, pharmaceuticals, and tires -started to respond in the late 1960s by setting up and acquiring U.S. affiliates. So did the giant Japanese trading companies particularly during the 1980s, when they were trying to circumvent protectionist U.S. legislation that would cut their access to the American market.
• To lower their manufacturing costs, Japanese and U.S. companies also started to invest in facilities in newly developing nations such as the Philippines, Malaysia, Vietnam, and Thailand. As a result, international trade and competition have intensified in recent years. More than one-quarter of all the goods produced in the world now cross international boundaries.
• While nearly three-quarters of the goods in the United States face foreign competition (Young, 1995). In this global market, organizations must fight to capture overseas markets while defending their home markets from foreign competition
• One of the more recent markets to open up to U.S. interests is Vietnam. In a move fraught with emotion and bitter memories more than two decades old, former President Clinton lifted the 19 year embargo against Vietnam. This has created a rush among American firms anxious to do business with the 72 million people of Vietnam.
• Among more than 30 companies with established representative offices in Vietnam are Digital, Bank America, IBM, Caterpillar, General Electric, Motorolla, and Phillip Morris. General Motors and Ford recently joined these companies tapping Vietnam's educated workforce.
• The U.S. companies have plenty of competition from other countries that have a selling head start, such as Australia, Taiwan, France, Hong Kong, and Japan. But a hidden U.S. advantage is the million or so Vietnamese who have settled in the United States and have already invested in small business in the south of Vietnam who are likely to do more now that is legal .
• There is no doubt we now live in a global marketplace. In scores of countries around the globe, the same products and services are available to consumers and organizations. These range from McDonald's restaurants to Sony electronic equipment to Nokia and Samsung cellular phones. But ask the average consumers where this global array of goods comes from and you will hear several answers that reflect differing perceptions.
• Throughout the world, McDonald's is the quintessential American fast-food restaurant, just as the Doc Martens is synonymous with British youth culture. But for many other product, brands, and companies, the sense of identity with a particular country is becoming blurred. Which brands are Japanese, or American, or German? Does a Big Mac taste the same everywhere in the world?
• There are many alternatives on how to measure globalization per country in the world. The KOF Swiss Economic Institute offers a useful ranking into three broad categories
• Economic globalization measures long distance flow of goods, capital, and services as well as information and perception that accompany market exchanges
• Social globalization measures the spread of ideas, information, images, and people.
• * Political globalization measures the diffusion of government policies in terms of the number of embassies and consulates in a country, membership in international organization, likewise participation of a country in United Nations peace missions and similar advocates
• In general, most of the countries in higher ranking are affluent countries or the so called "Global North" With the exception of Singapore which is situated geographically in the Global South, the rest are economically well-off. The statistics shows the top 36 nations (among the top 50) in the globalization index based on the data constructed in 2015. The index is based on three dimension or core sets of indicators namely economic, social, and political. The table also reveals that 28 nations included in the top 36 are European countries. Top 1 Belgium, Top 2 Ireland, Top 3 Luxembourg
• Singapore was ahead in the ranking in terms of economic globalization. This means, this city state was able to perform well in terms of capital and services spearheaded by their national Singapore Airlines and oil refinery and shipping terminals. Top 2, Ireland, Top 3, Luxembourg
• Social Globalization is dominated by countries in Europe that accounts for 18 of the top slots. Only Canada and Australia made it to the upper ranking in terms of social globalization were spread of ideas, information, images, and people are being measured. Top 1, Switzerland, Top 2 Austrian, Top 3 Canada
• In political globalization, European countries dominated the slot with 14 countries occupying the upper positions in terms of political globalization. Canada, the United States (North America), Egypt (Africa); Brazil (South America); and India (Asia) joined the upper rankings. Top 1 France, Top 2 Italy, Top 3 Belgium.
• In general, most of the poor countries (not reflected in the table) are out from the top rank of any of the economic, social and political globalization rankings because these countries have few foreign workers and relatively low amounts of international communication and contact.
• They also have relatively low levels of Internet use, as large segment of the population does not have access to computers or training to use computers in daily life. Hence, the more globalized an economy, the greater its links with the rest of the world.