SOCI 102 Lecture Notes - Lecture 1: Starbucks, Industrial Revolution, Second Industrial Revolution
Document Summary
The process in which people, ideas and goods spread throughout the world , spurring more interaction and integration between the world"s cultures, governments and economies (google) Globalization is a process of interaction and integration among the people, companies, and governments of different nations: three factors have motivated companies to expand internationally. Economics of scale: companies are able to achieve the lowest possible cost per unit of production through large-volume production (cost 100/10 products = cost 10/per product, and 100/100 = cost 1/per product) For many us companies domestic markets no longer provide the high level of sales needed to maintain enough volume to achieve scale economics. Starbucks, after closing hundreds of underperforming stores in the. Us, has targeted asia for rapid international growth, planning to open thousands of stores in china, india, and vietnam. Economies of scale also enable companies to obtain volume discounts from suppliers, lowering the cost.
