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The Profound Impact of Globalization

Globalization has made it possible for me to use and consume many products I encounter daily. Many mornings I walk across the street and buy a Dunkin Donuts coffee. Dunkin Donuts sources the beans for their coffee from Latin America. The decision to expand into the Latin American market and use coffee beans from that region has brought a product of the warm tropical climate of Latin America thousands of miles North where it is consumed by thousands of Americans every day.

     My parents own two cars, a Honda and a Hyundai. These are Japanese and Korean car manufacturers, respectively. Honda first broke into the North American market in 1970, while Hyundai expanded into the United States a little later in 1986. Both companies capitalized on a market opportunity when companies like GM and Ford were producing cars that were unreliable and got poor fuel economy. This globalization of market presence by Hyundai and Honda allowed my parents, and millions of other Americans, access to incredibly reliable vehicles at a very affordable price.

     The United States has undoubtably benefited from globalization. It has allowed American companies to expand their market presence and has made it possible for foreign countries to invest in the United States, creating jobs and capital here at home. Take Toyota for instance, they have several production plants located in the United States, despite being a Japanese car manufacturer. One of these plants, located in Indiana, employees roughly five thousand Americans. A good example of an American firm capitalizing on globalization would be GE, who now makes 52% of its revenue outside of the United States (csimarket.com).

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