Globalization: International Trade and World Trade Organization Essay

1.Describe how the universe of discourse economy is becoming more integrated than for invariably before.The servicemanwide economy is becoming more integrated than ever before. The humans trade organization (WTO), now has 153 countries involved in more than 95 percent of the instaurations trade. The global economy is dominated by countries in three regions Western Europe, North America, and Asia. Europe is sparingally to course of study he biggest market in the world. Under the Maastricht Treaty, which formally established the European Union (EU), the euro was adopted as a common currency among European countries with the goal to strengthen Europes position as an economic superpower in the world. Among the Pacific Rim countries, Japan dominated world attention toward the end of the last century and with the worlds monolithicst commonwealth and increasing industrialization, China is on its way to becoming the larges producer and consumer of the worlds goods.Asian countries h ave joined the United States, Australia, and Russia to form the Asia-Pacific scotch Cooperation (APEC) trade Group. Association of Southeast Asian Nations (ASEAN) brings together 10 developing nations and is aimed at cultural evolution 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 handicraft 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 mystify the worlds second largest online support, software developer and other services.2.Discuss what integration of the world economy means for individual companies and their managers.Compared with only a few old age ago opportunities are greater because the movement toward free trade has unfastened up many formerly protected national markets. The potential for export an d for making direct investment overseas is greater today than ever before. The environment is more complex because todays manager a lot has to deal with the challenges of doing business in countries with radically different cultures and coordinating globally dispersed opportunities.The environment is more competitive because in addition to home(prenominal) competitors the managers must deal with cost efficient overseas competitors. Companies both large and small now view the world rather than a oneness country as their market and need to identify the best dodging for competing in a global marketplace. Universal needs exist when the tastes and preferences of consumers in different counties with regard to a product are similar, creating strong pressure sensation for a global strategy. Thus, managers need to make sure that their companies are fitting to adapt to different needs in different locations not besides locally but globally.Irene B. Rosenfeld, the CEO of Kraft and Gener al Foods, understood the immenseness of globalization and to save the struggling company, aside from its North American market, she alike focused on the overseas market. Krafts global expansion strategy targets 10 markets. Also, Kraft will focus on its overseas efforts and research and development for ten best selling brands which accounts for about 40% of Krafts international sales and over 60% of its profits.