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 fuel the need for globalization. Communities and organizations are affected by globalization, and small countries benefit from the generosity of the largest players in the global market. Globalization, in the commercial sense of the term, consists of making a product or service available on the world market. Any cross-border investment is also part of globalization. Many companies in the United States have expanded 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 around the world. Like any business that affects the global economy, positive or negative effects can occur. Many different theories support the concept of globalization. Customs duties are collected country to country. Tariffs are duties, also called taxes, that each country imposes on that country's imports and exports. The government of the country in question imposes customs duties. The World Trade Organization (WTO) oversees all countries. Absolute advantage supports the concept of globalization because this concept ensures that one country can produce a better and more efficient product than another country. By importing or exporting this product or good, countries that use this product can easily trade other products or goods. This helps countries produce things to make them more efficient. Comparative advantage occurs when the opportunity cost of producing goods differs across countries, all... middle of document ...... supports the reasoning behind the need for globalization. Many countries benefit from using products and services from other countries. In turn, countries benefit from each other. Markets will dictate the driving forces, but for now, technology is the main driving force in the global economy. The effects of globalization can be seen in many organizations and even many communities across the United States. Regional trading blocs help countries that would not normally participate in the global market. Globalization will only strengthen the world economy. References Blundel, R. and Thatcher, M. (2014). Contrasted local responses to globalization: the case of volume yacht manufacturing in Europe. Internet. May 18, 2015. Hill, C. (2008). International Business: Competing in the Global Marketplace (7th ed.). New York: McGraw-Hill.