Globalization and Convergence

globalization
Definition: Name for the process of increasing the connectivity and interdependence of the world's markets and businesses.

convergence
Definition: The coming together of two or more disparate disciplines or technologies. For example, the so-called fax revolution was produced by a convergence of telecommunications technology, optical scanning technology, and printing technology.

Just read an article in the LA Times titled ‘Coping with Globalization’. Following are highlights of this emerging phenomena.

Globalization: Technological advances, liberalization of markets and the entry of low-cost competition.

The 5-year research program involved talking to 500 companies around the world to discover what specific approaches they were taking to meet today’s challenges.

What does globalization mean in practice? CONVERGENCE.

The challenge of globalization leads to reorganization and relocation.

We used to worry about products being “Made in America”, but with the “modularity” of modern business we will see “Made All Over.” It’s the combination of modularity and the break-up of the production system, together with the opening of the international economy that delivers globalization.

The challenge is “creating your own competitor.”