Globalization of markets refers to the convergence of national consumer markets into a single global marketplace where companies sell to customers worldwide. Globalization of production refers to the dispersal of a company's production activities — design, manufacturing, assembly, services — across different countries to take advantage of differences in cost, skills, and resources.
Two Different Concepts Globalization is often discussed as a single phenomenon, but in international business education it is important to distinguish between two related but distinct processes: the globalization of markets and the globalization of production . Both are dimensions of the broader globalization process. Both have accelerated dramatically since the 1980s. But they refer to different things, are driven by different forces, and have different strategic implications for companies. Wha