Globalization is necessary in the world. Different theories on the concept of globalization provide distinct reasons for the need for globalization. The world's advancements and technology help spur the need for globalization. Both communities and organizations are affected by globalization, and smaller countries benefit from the generosity of larger global market participants. Globalization, in a business sense, is about making a product or service available in the global market. Any investment across national borders is also part of globalization. Many companies in the United States (US) have brought their products, services, or investment opportunities to other countries. This affects the global economy. Just as the U.S. economy affects many Americans, the global economy affects citizens of the world. As any company that impacts the global economy, positive or negative effects may be realized. Many different theories support the concept of globalization. Rates apply from country to country. Tariffs are duties, also known as taxes, that each country levies on that country's imports and exports. The government of the country in question applies a tariff. The World Trade Organization (WTO) oversees all countries. Absolute advantage supports the concept of globalization, because this concept guarantees that one country can produce a better and more efficient product than another country. By importing or exporting this product or good, countries using this product can easily trade other products or goods. This helps countries produce the things that make them more efficient. Comparative advantage occurs when the opportunity cost of producing goods differs from country to country, all… middle of paper… supports the reasoning behind the need for globalization. Many countries benefit from using other countries' products and services. In turn, countries all benefit from each other. The markets will dictate what the driving forces will be, but for now, the biggest driving force in the world economy today is technology. The effects of globalization can be seen in many different organizations and even communities in the United States. Regional trading blocs help countries that would not normally participate in the world market. Globalization will only strengthen the world economy. Bibliography Blundel, R., & Thatcher, M. (2014). Contrasting local responses to globalization: the case of large-volume yacht production in Europe. Network. May 18, 2015.Hill, C. (2008). International Business: Competing in the Global Marketplace (7th ed.). New York: McGraw-Hill.