Globalization is a term that refers to the breakdown of national boundaries in business and trade thus creating a worldwide economy. Technology has especially sped up the process and ease of doing business overseas. Globalization is not always a good thing for the small businesses. An example is the Hooker Furniture Corp. (HOFT). Hooker is a furniture manufacturer based in Virginia. In the year 2000 Hooker Furniture made most of their products here in the U.S. but global competition compelled them to outsource their manufacturing. Savings reached 20-25% but cost many of HOFT's U.S. workers dearly by eliminating their jobs.
Hooker Furniture is but one example of domestic U.S. manufacturing that has been outsourced overseas, with a loss of good-paying jobs. The benefit to the U.S. economy from globalization is supposed to be quality goods at lower prices for the American consumer. However, even as U.S. furniture manufacturing has declined import prices on furniture from China have increased 6.7% since 2003, thus negating much of the benefits to consumers.
Sources:
"Wrenching Process" paragraph on HOFT
http://www.businessweek.com/magazine/content/07_25/b4039001.htm
Globalization definition
http://www.investorwords.com/2182/globalization.html
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