Globalization In Commerce

Globalization in commerce

Introduction

Globalization is a process present in the world economy, punctually, is known as an economic, political and social process, with technological and cultural scope also.

This, together with the interrelation of economies, have accelerated internationalization processes; Knowledge has integrated worldwide and, because of the impacts of a series of integrationist technologies, the globalized production process has consolidated.

With the effects of globalization, it is possible to understand that the economy evolves over time, and international trade does so that according to Romero during the last 30 years it has grown more than world production.

Developing

This behavior is not surprising, because some companies produce for export rather than for domestic consumption, and in other countries instead matter to supply their domestic market, the latter can be exposed the case of China that, in terms of Agricultural products, for example, is forced to import from other countries such as Ecuador because local production does not supply the country’s internal consumption. This is an opportunity for developing countries to favor your trade balance by increasing its exports.

This is the dynamics of international trade, which represents the flow of goods and services, the globalization of markets and the internationalization of companies, which also contemplates various elements that composes the international logistics chain.

Navarro et al. They say that export is the traditional path for the raid of companies in foreign markets that decide exterior, both in production, distribution and marketing.

For Romero, competitiveness will continually depend on the ability of countries to capture the new techno-economic paradigms. On the other hand, the company must adapt in the new country-market and according to Navarro et al. (2013), that adaptation depends mostly on its ability to process and interpret relevant market information.

Companies that decide to internationalize must also have facilities for production, in this sense, a country, due to natural conditions, can also have advantages in the production of a certain product. 

The theory of comparative advantage, developed by the English economist, David Ricardo (1817), and that it is also a fundamental theory of international trade, says that a country tends to specialize in production and consequently in the export of goods they prepare with a lower cost compared to other countries. 

conclusion

The best of the results of this theory would be that the commercial balance of a nation always ends with a surplus, by definition, Vázquez and Morales (2017) explain that the country that has an offer of exportable products with comparative advantage is considered that this basket of goods or services is overravitary. 

But, as previously explained the dynamics of international trade do not always occur. Other related factors influence, mainly those involved in international logistics, which will be defined in the following statement for the purposes of this research.