Globalization: International Trade and World Trade Organization Essay

1.Describe how the world economy is becoming to a greater extent integrate than invariably before.The global economy is becoming more integrated than ever before. The world make out organization (WTO), now has 153 countries involved in more than 95 percent of the worlds trade. The global economy is rule by countries in three regions Western Europe, North America, and Asia. Europe is economically to make water he biggest market in the world. Under the Maastricht Treaty, which formally established the European Union (EU), the euro was adopted as a common property among European countries with the goal to strengthen Europes position as an economic superpower in the world. Among the Pacific Rim countries, Japan prevail world attention toward the end of the last century and with the worlds largest cosmos and increasing industrialization, China is on its way to becoming the larges manufacturing business and consumer of the worlds goods.Asian countries have joined the United States , Australia, and Russia to form the Asia-Pacific Economic Cooperation (APEC) trade Group. Association of Southeast Asian Nations (ASEAN) brings together 10 developing nations and is aimed at cultural development and political security. The North American Trade Agreement (NAFTA) combined the economies of the United States, Canada and Mexico into one of the worlds largest trading bloc. And, as for the rest of the world with all the important developments, markets and competitors shaping the global environment, India for example with the fast growing economy and huge population has become the worlds second largest online support, softw be developer and other services.2.Discuss what integration of the world economy means for individual companies and their theater directors.Compared with only a fewer years ago opportunities are greater because the movement toward free trade has opened up many formerly protected national markets. The potential drop for export and for making direct inve stment overseas is greater right away than ever before. The environment is more complex because todays manager often has to deal with the challenges of doing business in countries with radically different cultures and coordinate globally dispersed opportunities.The environment is more competitive because in accession to domestic competitors the managers must deal with cost efficient overseas competitors. Companies both(prenominal) large and small now view the world rather than a single country as their market and need to identify the stovepipe dodging for competing in a global marketplace. Universal needs pull round when the tastes and preferences of consumers in different counties with regard to a product are similar, creating sacrosanct pressure for a global strategy. Thus, managers need to make sure that their companies are able to adapt to different needs in different locations not just locally but globally.Irene B. Rosenfeld, the CEO of kraft and General Foods, soundl ess the importance of globalization and to save the struggling company, aside from its North American market, she also focused on the overseas market. Krafts global expansion strategy targets 10 markets. Also, Kraft will focus on its overseas efforts and investigate and development for ten best selling brands which accounts for about 40% of Krafts international sales and over 60% of its profits.