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Universalization: "The American Hegemonic influence"

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  1. Introduction - Case abstract
  2. Strategic Audit
    1. Current mission
    2. Current objectives
    3. Current strategies
  3. External environment
  4. Internal environment
  5. Strategic alternatives
    1. Continue Related Diversification Strategy via Acquisitions
    2. Expand Retailing Stores in Latin America & Beyond
    3. Introduce New Products in Current Retail Locations
  6. Recommendation
  7. Implementation

We will trace the history of globalization with some key dates that are of critical importance. This phenomenon is not new; indeed it is true that historically man faced the act which is also known as an "exchange." It is an act that is conscious, deliberate, and specific human rights could hardly survive alone. Moreover, according to the HOS theorem, the exchange was based on the fact that there is an inequality in the factors of production. The exchange is a way to prevent the disappearance of individuals, which can be fatal for man. This phenomenon is in constant growth since the arrival of man on earth: it started with barter and traffic and finally led to trade. However, we will focus on the recent meaning of globalization as characterized by several factors, including free trade, and also the flow of capital and information, as well as the international mobility of people. This phenomenon appeared around 1820. The late 19th and early 20th centuries and the second half of the 20th century were the periods of highest growth in world history. We can see a strong internationalization of economies in the 19th century. Britain was the first to enter the era of industrialization and free trade. Ricardo, an economist of the 19th century, advocated his theory of comparative advantage to promote free trade while rising against the Corn Law. It was in 1846 that it was eventually abolished. This stream was then followed by Germany in 1834 with the signing of the agreement of the Zollverein. In 1860, France signed a treaty of free trade with Great Britain to reduce tariffs. In addition, the U.S. remained quite protectionist until the mid 19th century. The current free trade was undermined in the late 1870s and protectionism was restored in most countries. Thus, until the Second World War, according to economist Paul Bairoch, "protectionism is the rule and free trade, the exception." However, between 1800 and 1939, the trade volume has increased. Indeed, between 1800 and 1913, it multiplied by fifty times. This growth increased exchanges, both economically and led to a creation of a more social organization to establish a unity between nations and promoting exchanges to resolve trade disputes between nations.

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