Posted on April 5, 2011 by matthewdbenson
The trend known as ‘globalization’ tends to be the cumulative effect of many small, incremental steps. Once in a while there are technical innovations which result in a step change, or acceleration of globalization – the advent of shipping, flight, etc. Computers have also supported the increasing complexity of business, enabling more complex (but still economically and chronologically viable) sourcing solutions to be developed.
Recently I came across a website which, while relatively simple, appears to me to have potentially astounding consequences for globalization: peopleperhour.com.
Filed under: Global economic environment | Tagged: eBay, Employment, globalisation, globalization, iPhone, Labour economics, smartphones | 1 Comment »
Posted on May 9, 2010 by matthewdbenson
Steve Jobs announced the iPad in January as being “a magical and revolutionary product at an unbelievable price. Starting at $499.”
Whatever your views are on the product, whether it is magical or revolutionary, it was quite easy for anyone, anywhere in the world to see that prices (to US customers) started at $499. Fact. Sort of.
Prices were announced just recently for the launch of the iPad in a further nine countries, including some in Europe, and there has subsequently been a fair amount of discussion in the blogosphere about whether non-US customers are being abused, or taken advantage of, that an ‘unfair’ premium might be being charged to non-US customers.
While this is not impossible, there are some differences between the prices, and other matters for consideration, which I set out in this post, that need to be taken account of.
Filed under: Global economic environment | Tagged: Apple, cost-plus pricing, cross-border pricing, currency under- and overvaluation, Economist Big Mac Index, fixed cost absorption, globalisation, globalization, iPad | 6 Comments »
Posted on July 7, 2009 by matthewdbenson
Globalization – Who wins, and who loses?
“Globalization”, in particular the increase in trade across the globe, is not a new occurrence. It has been occurring over several centuries already, beginning with the trading of key natural resources and continuing into the last century with international trade (export/import) of, mostly, finished goods.
In the last decade Globalization has become ever more prominent driven by the growth in the role of emerging markets such as China, India, and Latin America, and the trend for producers to source different parts, not just whole finished goods, from different locations depending on their cost competitiveness. These changes have been created by improved technology and focus on reducing trade barriers. Globalization has also become a source of much media attention and raises emotional arguments due to its fundamental impact on the daily lives of people across the globe.
Filed under: Global economic environment | Tagged: Global economic environment, globalisation, globalization | 4 Comments »