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Unformatted text preview: ProFile 3 UNIT 4 Globalization Globalization is the international exchange of goods, services, and people resulting from the increased connectivity provided by transport and methods of communication, and the introduction of laws and agreements which facilitate free trade across borders. Free trade draws heavily on the ideas of the nineteenth century economist David Ricardo (1772-1823), whose theory of comparative advantage argues that each country will be better off if it specializes in what it does best. Uzbekistan, for instance, has exploited its geography and the skills of its farming population to become the second-largest cotton exporter in the world. CLUSTERS Michael Porter of Harvard Business School has refined competitive advantage for our era, explaining how companies competing intensely in particular sectors cluster together in certain countries. This provides a competitive advantage for those nations. An environment of fierce domestic rivalry encourages innovation and develops workers’ skills....
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This note was uploaded on 12/12/2010 for the course RBS BCN taught by Professor Dekoe during the Spring '10 term at Rotterdam Business School.

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