Globalization can be defined as the process that embodies transformation in the social, economic relations that is expressed in the transcontinental or international network of activity, interaction and power. It has been involved in the stretching of social, political and economical activities. It has improved telecommunication and travel and made it very easy to access people across the spectrum (Hirst, and Thompson, 2002.). Virtually all the people are interconnected and most of the businesses are dependent on the companies and supplied from another country for its survival. There has many facets to this globalization impact the real magnitude of impact of globalization is a staggering volume. It has caused a tremendous impact to the life of the people and the processes of business operation. In this particular analysis, globalization with respect to product and consumption alone has been discussed in detail.
In the international arena and in the free trade zones there are three kinds of trade activities that are practiced by the countries. The first kind of product and trade exchange that occurs are in the primary level products that are procured from conventional businesses. These include agriculture, mining sector and other essential commodities (Salomon, 2016). In this system the product and the consumptions are influenced by the classic market mechanisms of the nation. Product prices are fixed in this sector. In the second category of product are the intermediate goods that are based on the reference prices. The process of these intermediate goods is obtained from the reference manual of trade price book. The third type of trade the products that are sold do not have any organization system (Scott, 2013). The pricing of the product is based on the companies that determine the prices. There is no real regulation or international mandates that are set up for the pricing of the products. These pricing are found to vary and have no regulatory systems in place.