Globalization and glocalization

Globalization and glocalization

1. Globalization

   • Historical process of global integration in the political, economic, social, cultural and technological fields, which has turned the world into an increasingly interconnected place, a global village.
     • Advantages
       • Production costs are reduced and therefore products are offered at lower prices.
         • Employment increases in places where multinationals arrive, especially in underdeveloped countries.
           • It increases competitiveness among entrepreneurs and increases the quality of products.
             • Technological improvements that help production and speed of economic transactions are discovered and implemented.
               • Greater accessibility to goods that previously could not be obtained in underdeveloped countries.
     • Disadvantages
       • Economic inequality within each nation as globalization benefits large and powerful companies.
         • In developed countries, unemployment and poverty will increase because large companies migrate to other places in search of cheap labor and raw materials.
           • Environmental degradation due to the exploitation of resources.
             • Less opportunity to compete with large multinational companies.

2. Glocalization

   • Glocalization is a term that comes from the fusion of words: globalization and localization."Think globally and act locally" This concept implies that the company adapts to the peculiarities of each environment, differentiating its productions according to local demands.
     • examples
       • Mc Donalds and its worldwide expansion of homogeneous characteristics at first sight, however, little by little they are impregnated by the local context in which they develop to achieve insertion in the desired markets. Eg the decoration and architecture of certain premises. Argentina: wide reception of the population, Uruguay: only frequented by sectors with greater purchasing power.
       • Coca Cola, being a globalized company that has managed to penetrate and enter every possible world market, did not have the expected welcome in the Peruvian market, which forced Coca Cola to buy shares of Inka Cola, the predominant drink in Peru to enter in a camouflaged way to the Peruvian market under a local image.

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