Globalization: International Trade and World Trade Organization Essay

1.Describe how the world economy is becoming more interconnected than ever before.The global economy is becoming more integrated than ever before. The world trade organization (WTO), now has 153 countries involved in more than 95 percent of the worlds trade. The global economy is predominate by countries in three regions Western Europe, North America, and Asia. Europe is economically to form he biggest mart 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 largest population and increasing industrialization, chinaware is on its way to becoming the larges producer and consumer of the worlds goods.Asian countries have joined the United States, Australia, and Russia to fo rm the Asia-Pacific Economic Cooperation (APEC) trade Group. Association of atomic number 34 Asian Nations (ASEAN) brings together 10 developing nations and is aimed at cultural nurture and political security. The North American Trade Agreement (NAFTA) combined the economies of the United States, Canada and Mexico into peerless 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 wide population has become 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 hardly a(prenominal) years ago opportunities are greater because the movement toward free trade has opened up many formerly protected national markets. The potential for merchandise and for making direct investment overs eas is greater today than ever before. The environment is more complex because todays manager often has to occupy with the challenges of doing business in countries with radically contrary cultures and coordinating globally dispersed opportunities.The environment is more competitive because in addition to domestic competitors the managers must administer with cost efficient overseas competitors. Companies both large and small now view the world rather than a single country as their market and need to identify the best strategy for competing in a global marketplace. Universal needs exist when the tastes and preferences of consumers in different counties with regard to a harvest are similar, creating strong 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, understood 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 research and development for ten best selling brands which accounts for about 40% of Krafts international sales and over 60% of its profits.