By Jausan Adams posted March 8, 2018
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By James L. Adams Jr.posted February 24, 2018
The concept of globalization is commonly mistaken as something initiated by the United Nations or aconsortium of nations. In fact, the concept was devised and implemented by multi-national corporations that became enhanced by the breakthroughs in technology and the Internet.
The question in the minds of many people is "How will globalization impact my life?" And rightly so, this is a valid concern for those that care not to change according with the environment. Today, the globalization concept continues forward as resistance mounts among those that prefer a more traditional way things were in the period prior to the 21st Century. The evidence is that within this century there will be more integration of economies and technologies as we go forward. Like technology, globalization does not have a back button to make things as they were in the past.
One of the key benefits to all parties involved is the broader range of resources available. In the past for example, there were a limited number of financial institutions for consumers to seek funding for mortgages, automobiles, and other items. In our modern era, the lending institutions that were once too conservative or had a lower risk tolerance denied or ignored consumers until other more credible sources supported them. Now, these institutions could not remain in business due to the competition. A bank based in Brazil may be willing to lend capital to a consumer that is starting out for the first time with a home or car. Yes, there is risk, but many of the global movers have realized that there is a thriving market that ha been overlooked in many domestic arenas. In that example, we can clearly see how adhering to old ideas can quickly lead to a firm's demise.
Americans learned this the hard way during the 1980's whe the Japanese automakers took 20% of the market based on cheaper well-built automobiles that American consumers demanded. Detroit ignored the consumer at the time and preferred to pursue the concept of having a contained domestic market that would purchase new cars every 48 months due to obsolensence.
Despite the efforts of nations in the 21st Century attempting to implement a nationalist approach to globalization, their efforts are feudal in the sense that isolationism will force many of their firms to concentrate in other markets. The fundamental problem with protectionism is market saturation. Also, as prices rise, consumers will seek relief as did American prior in the 1980's. Price & Quality are the two motivating factors that keep the majority of consumers loyal. The once coveted concept of paying a higher price based on relationships and geographics is becoming less relevant.