Globalization has three major components:a. Barriers to traderules that limit trade with another countryb. Tariffstrade allowed but fee must be paid to importing government. Discourages purchase and protects local productionc. Immigrationrules about importing workers. Limit protects local workers but if skills needed can be harmful to economy.3. When David Ricardo first postulated Comparative Advantage theory, the resources needed to produce goods were not easily moved across international borders let alone overseas. Those resources include land, labor, entrepreneurship and capital. Is comparative advantage undermined when these factors of production can relocate with relative ease? Add technology to these basic factors and yes, they are quite moveable.4. Thomas Friedmans GREAT BOOKThe World is Flatdescribes our era as Globalization 3.0 (1.0 was 1492-1800explorers and trade) (2.0 was 1800-2000 (I would make it more like the mid 1800)multi-nationals and transportation improvements and telecommunications began to shrink the world.5. He says that 10 factors led us into Globalization 3.0a. Berlin Wall coming down in 1989b. Netscapethe first public internet browser in 1995c. Workflow software in the late 90scommon web-based standards (e.g. Windows)d. Open source software that allowed computer fanatics to access and improve programs and websites.e. OutsourcingIndia for the most partmoving back office jobsnot physical plantsf. Off-shoringthats China and actual movement of manufacturing facilitiesg. Supply chaininginventory control that reduces need to stockpile producth. InsourcingUPS handling orders and deliveries for smaller operations.i. In-forming—Google, Yahoo, etc.j. Steroidswireless devices that all accessing internet anywhere
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