What Is globalization?
Is it the integration of economic,globalization definition political, and cultural systems across the globe? Or is it the dominance of developed countries in decision-making, at the expense of poorer, less powerful nations? Is globalization a force for economic growth, prosperity, and democratic freedom? Or is it a force for environmental devastation, exploitation of the developing world, and suppression of human rights? Does globalization only benefit the rich or can the poor take advantage of it to improve their well-being?
For simplicity, let us assume that all the companies are the same size in the market; due to the fragmentation of the market, this approximation is valid for most companies in the market. The higher the demand is, the more supplying companies a fragmented market requires. The market share in a fragmented market is fairly irrelevant. The demand is uniformly fragmented in the market and therefore the supply, due to the characteristics of the product, is also uniformly fragmented. The market structure is the driving element within this simplified analytical view. The reason for entering this market, besides the desire to exert control, is to increase one's own added value within the value chain. This reasoning is especially valid for the intermediate products (standards). The reasoning for convenience such as services (hotels) or fast-food is similar, but through the differentiation of the product and the end customers' behaviour, the causal relation has to be reconsidered, taking into account the comparative characteristics of the product or service offered. Indeed, combined with the fragmentation of the final demand, Type 2 fragmentation is an indicator for the necessary polypolistic offer structure to reach the next transformation stage of the value add chain or to be distributed to the final customer.