Question

QUESTION 7 Explain how every local firm is part of the global economy. Provide a local example.

Answer 1

puye Globalization gefegls to a process by which gjegional economies, Societies and cultustes become integrated though a global network of comunication Tojan s pogitation and Tejade. The libesyalization of economies agound the world along with development of information technology and othes technologies caused mogje and mosle figme to entes into global maaket: Business agound the globe pas ticipates in the global economy utilizing theisy gqeatest Assests; concepto , competencies and connections. polesently mogle and mosje gjegional as well as local figme asle stepping to the global scenario. Euesjy local figm is becoming past of the global economy. In the Industöial economy place of location of business mattested goleat because they gave them contayol overy facto 316 of peoduction - men Matesial and labog and access to tajans postation Netwosks that helped them in seducing theisy cost of

pager moving products between places. Even though Fiduanements in Technology and 11 helps in oves coming the Poblems of Tanspogtattu and Availability of Information of Trade, doocal proximity of figms that produce Similas competing and 0,1 gelated products still matteg. Global competitivnens often depends on highly concent stated local knowledge: We focus on local fisums whesje theisy business entesqed global maskets has developed through the effogts of a clustesy of small fisms. Local products and knowledge asje gaining momentum these days, global economy has become mogle inclusive. Local firms have cheap and bettesy acems to spesousce equised foon poroduction. This helps them in lowesting theigh cost of psyoduction , which in tusen they can pass onto consume gjes globally The age has albo been a goowing taste tow asido local poloduce among intemnational consumess. All these asje gueat

Page 3 oppusitunities, learning, hedging sinky yg maskets , inestea sed gevenue, and othes benefits that can cont sibute to competitiuneas Pouide powe 140l incentives foy the right time to entes global markets despite the costs , pestio die ups and downs, and immediate headwindo of custent Tsade landscape. Foxfury lighting solutions was a family owned company headquagtested in the coastal, nogthegan outskirts of san Diego . They developed a specialized light to allow night susifing on csowded beaches. Today fox-fusly exposits cutting edge "Xtgemium" headlamp products to china, Japan and other countsjien asound the woolld , helping fisye and gescue officials respond to majos global humanitarian disastess from easthquakes in fukushima and italy to hugplicanes puesto Rico and Teres. Theisy shift from a locally opesjated

page 4 business to a global eupogleg is u global enpogte is an evolution: In san diego whesje for fugly accelesjated its expositing activity though a galant competition and suppoolt pgogglam Administeged by Włosyld Tsjade cent se san diego , An affilate of San diego Regional Economic development Coopogation (EDC).