1.0 Introduction

Globalization is the process there is international spread and connectedness in communication, production and technologies across the nations. It is the international integration which arises from interchange of word products, views, ideas and other aspects of culture. Advances in telecommunications infrastructure and transportation, including the growth in the internet are some of the major factors which contribute much to globalization.

Globalization is an international scale of growth, a continuing process where cultures, economies and societies are integrated. Globalization has both positive and negative effects on the world. Large scale companies trade their products and services all over the world. People have been able to benefit from instant internet connections (Pietro, Giorgio, Alberto, 2008). This has facilitated easier and faster communication across the world. In addition, increased media coverage has led to improvement in human right issues.

2.0 Effects of Globalization on trade

Globalization has led to the formation of trade treaties among nations. World trade organization was formed in order to facilitate trade between countries. Also, it was formed to facilitate trade thus removal of barriers to trade.

There has been also African growth and opportunities act which has been signed between United States and African countries. The agreement was signed to offer incentives to African counties to open their markets and economies. Also, African countries can access United States markets especially in exportation of textiles. It offers trade opportunities to many sub Saharan countries.

Globalization is cited as one of the factors which have contributed to foreign direct investment in many countries. Through foreign direct investment multinational companies have been able to expand their businesses globally (Bruce, 2011).

Moreover, globalization has helped in opening of new market opportunities across borders. There has been faster movement of good and services across borders facilitating exportation and importation of goods and services.

All over the growth fast food industries has been growing. This can be evidenced in appendix 2 which shows the growth in fast food industry in Russia

However, globalization has led to increase of human trafficking and child labor. Some companies have exploited under age children by offering them employment with cheap wages.

Globalization has been cited as one of the main contributors of increase in poverty and inequalities, in many countries. The poor countries grow richer, while the less developed countries became poorer (Milanovic, 2002).

3.0 Theories of globalization

There are different theories relating to globalization. Some of the theories see globalization as beneficial while other see it non beneficial. Some argue that globalization makes it easier jobs to be transferred to places where labor is cheap. Thus there are many losers than winners in globalization.

They see globalization as powerful and inevitable. The effects of globalization can be felt everywhere in the world thus cannot be influenced or rested by people. Positive globalists argue that the quality of life has improved. It also promotes sharing and understanding among people as well as bringing people together (Milanovic, 2002).

Negative globalists argue that the world is beaming more homogenous and less diverse. This is because major political and economic interest dominates the whole world and imposes their personal interest and agenda.

Internationalists are very skeptical concerning globalization. They dispute whether there is any fundamental change in the manner the world is organized. They argue that the global flows of money and trade are not significantly different from the historical times (Bruce, 2011).

Transformationalists think that globalists have exaggerated their arguments on globalization. They have pointed out that it is not easy to underestimate globalization or dismiss globalization effects.

All theories attempt to explain the impact of globalization in terms of politics, economics and culture. Many areas of government policies are as a result of trying to respond to pressures caused by globalization. This is more eminent in training and education. Most of policies are aimed at curbing the negative economic aspects of globalization. An example of the negative effect is the effect of United States financial crisis to the rest of the world (Caroline & Diana, 2004). Numerous countries have been affected as a result of economic downturn in United States In addition, the debt crisis in Greece has spread in many countries of the rest of European countries.

Therefore, most of policies are geared toward curbing the spread of the debt crisis to Euro zone.

4.0 Literature review

Proportion of traded goods and services in the world output has been rising greatly in the past several decades. Trade has greatly increased as a result of specialization as countries have exploited their comparative advantage. Globalization has led to increase in trade volumes across nations. Countries have benefited from technological transfer (Michael, 1992).

Internet stimulates trade. Evidence, which come from cross section regressions and time series, shows that there is significant effect of internet on international trade. Caroline & Diana did a study on effect of internet on trade. The results revealed that a ten percentage increase in growth of web hosts in a country results to about 0.2% increase in export growth (Bruce, 2011). Internet access has led to a 1% increase in annual growth in exports for the period between 1997 and 1999. Internet has improved competition among industries and also internet access reduces fixed costs of trade. Internet has improved the level of international trade since people are able to get relevant information without traveling. Moreover, customers are able to get all relevant information concerning the current goods and services available in the market (Caroline & Diana, 2004).

Globalization affects income distribution among countries. The gap between the poor and rich has become a matter of controversy. From international trade theory stipulates that increased foreign investment and trade should make income distribution more equal in less developed countries and less in equal in rich and developed countries (Caroline & Diana, 2004). However, finding those evidences have proved elusive. Milanovic used a household budget surveys and looking at foreign direct investment and openness to determine effects of globalization on trade. He was able to find evidence that low average income levels, it is the rich who benefit. (Milanovic, 2002).

Changkyu (2010) did a study on the effect of internet on service trade. He found that a doubling of internet usage in countries has led to increase in trade in services. Increase in a country’s internet access facilitates an increase in service trade with other countries (Changkyu, 2010).

Recent estimates show that there are over 65000 transitional; corporations, with over 850000 foreign affiliates across the globe. The thriving of Multinational Corporation is an evidence of economic globalization. Foreign direct investment is among the key indicators of global economy. FDI has increased from half a trillion united states

dollars in 1980 to 6.6 trillion in 2001 accounting to 4.8% of the world gross domestic product (UNCTAD, 2002).

5.0 Fast food industry in china

Globalization has led to growth of western fast food economy in the world especially in china. The number of fast food restaurants has greatly increased in china over the last twenty years as a result of globalization. Western fast food industry in china was not existent in the last decades. This limited china population to few fast food choices. The few choices available were traditional Chinese restaurants, tea and egg merchants, pulled noodle and small fast vendors in five star hotels (Paul 2012). Globalization has led to change in eating habits in china since the Chinese are now changing their fast food industry to more modernized economy.

Moreover, globalization has led to transformation of advertising in many countries. Fast foods are advertised as lifestyle for middle class in society, for modern people and workers.

6.1 McDonald case study

McDonald fast food restaurants are found in 119 countries. It serves 58 million people daily and operates in 31000 restaurants worldwide. The company is operated by affiliate, franchise or corporation itself (Changkyu, 2010). It collects revenues from royalties, fees and rent paid by franchises. It is one of the world’s well known and valuable brands. It holds a global brand quick service restaurant in segment of informal eating out of market in every country in which the company operates business (UNCTAD, 2002). The favorite foods offered are Big Mac, quarter pounder, chicken McNuggets, World famous French fries and Egg McMuffin.

The MacDonald’s was started in 1954 by Raymond Kroc. It is the leading restaurant chains in the world. It had been started as a barbecue restaurant which was operated by two brothers Richard and Maurice McDonald. Ray Kroc then acquired the franchise of the MacDonald restaurant to operate outside Arizona and California. He then opened restaurants in Chicago, Illinois which gave birth to MC Donald Corporation. Later in 1958, the restaurant sold its 100 millionth hamburger (Donald, 2010).

Macdonald foods are popular in many countries as a result of media and internet advertisements. Through aggressive marketing campaigns targeting consumer wants and needs through internet and media has contributed a lot to the growth of McDonald foods in the world. The company is popular because of its unique western taste of fast

food French fries which have specialized ingredients such as sweet, sour taste ketchup (John, 1998).

Western style is admired by majority of Chinese and third world countries. The population is eager to learn and understand the advanced western technologies, such as internet. Media portrays western lifestyle as having many opportunities among educated and athletes. McDonalds have used globalization of western lifestyles through the media to their own advantage. Chinese basketball icon Yao is commonly used on advertisements for MacDonald. He shows image of westernized man eating McDonalds. Therefore, the company capitalizes on globalization of western culture in many countries to exploit the market (Zeng, 2004).

Asianization has led to growth of fried rice spread all over the world. Many countries have started consuming rice as a result of globalization. Therefore, globalization has led adoption foreign ways of living in other countries (John, 1998).

From appendix 1 it is evident that McDonald has been facing growth in cash flow and revenues from 2004 to 2011. However, in 2009 there was drop in revenues due to economic crisis experienced in 2008/2009.

6.2 Kentucky fried chicken (KFC) case study

Kentucky fried chicken (KFC) is world largest chain of fried chicken restaurants. It is the second largest fast food restaurant after McDonalds. Its headquarters are in Louisville United States. The company has over 17000 branches in over 105 countries worldwide. The biggest markets of its fried chicken are in china and United States of America.

Through globalization, the company has been able to expand to many countries. People have moved to consuming of more junk foods have are affecting their health and lives. People in many countries have adopted the western cultures thus promoting eating of Kentucky fried chicken worldwide.

Globalization and growth of Kentucky fried chicken

Through the use of internet and media, the company has been able to market itself globally. Also, in the media adverts, its products have been displayed as a modern way of eating habits.

Through globalization, the company has been able to investment across United States borders. This has been necessitated by the growth of markets abroad and westernization of many countries. Business opportunities have been opened up in

many countries resulting to rapid expansion of the company (Kaplinsky, 2005). In this regard, the company has been able to expand all over the world hence becoming the second largest fast food restaurant in the world. The company has been able open over 17000 branches worldwide.

6.3 Similar and Differences of McDonald’s and Kentucky Fried Chicken

Macdonald serves both non vegetarian and vegetarian foods and has too many options to select from. They all serve chicken but in different forms. In addition, the main element of Kentucky Fried Chicken meals is chicken while McDonald serves a wide variety of vegetarian meals as well as chicken meals.

The two companies have different logos Kentucky Fried Chicken has a cartooned image of sanders with Kentucky Fried Chicken written on the sides of image. On the other hand, McDonald logos have a clown down Kentucky Fried Chicken has a wider variety of preparing its chicken while McDonald focus primarily on fried chicken and hamburgers.

They are both fast food restaurants whom have a global presence with their headquarters in United States. McDonald offer drive through service and also offer breakfast while KFC does not. Finally, they have both been criticized offering hazardous foods, which are oily and fatty.

7.0 Conclusion

Globalization has facilitated and promoted growth of international trade. From empirical evidence it is evident that globalization has opened business opportunities across the world. As a result of internet and good transportation network the world has became a global village. Due to westernization people have imitated the western culture as well as western fast foods. Therefore, as result of globalization fast food restaurants have grown remarkably as evidenced by growth in MacDonald and Kentucky fried chicken. The two companies have spread all over the nations as a result of globalization (Kaplinsky, 2005). Fast food industry has tremendously grown with companies opening branches all over the world. Due to globalization fast food restaurants have spread all over the world.

Moreover, globalization has led to adoption of western fast foods. This has resulted in abandoning of cultural foods in many countries. For example, in china people the growth of fast food country has growth over the last two decades. More people have started eating junk foods. This can be evidenced by the rise in obesity cases in china. MacDonald and Kentucky fried chicken companies have grown as a result of globalization. The openness of economy has facilitated good environment for foreign

direct investment. There has been faster transfer of technology and information across the world thus branches can be easily be managed by their parent companies. Moreover, there is faster transfer of goods and services among countries.

7.1 Recommendation for McDonald’s and Kentucky Fried Chicken

The two companies are the leading fast food restaurants in the world. In order, to promote sales world they are supposed to have integrated marketing strategies in order to tap new markets. They are supposed to consider offering custom made foods attached to people cultures in areas where there is resistance to change. KFC should try to diversify its products since it offers only chicken meals and do not sell hamburgers like McDonalds.

McDonald Company needs to start offering a variety in preparing its chickens in order to tap new customers. Also the company should improve its packaging to match KFC.

Finally, the two companies must remove the fat and oil content in their foods in order to counter the negative impact on people health. They have faced criticism for contributing to obesity

7.1. Reference

Bruce D. (2011) Winning in the Global Market: A Practical Guide to International Business Success: A Practical Guide to International Business Success. ABC-CLIO.California

Caroline & Diana, (2004), The effect of the internet on international trade.Journal of International Economics Volume 62, Issue 1, Pages 171–189

Changkyu C. (2010) The effect of the Internet on service trade.Economics Letters Volume 109, Issue 2, November 2010, Pages 102–104

Donald D. (2010) Mergers and Acquisitions Basics: All You Need To Know. Academic Press. Waltham.

John c. (1998) Economic Effects of globalization. AShgate. California.

Kaplinsky, Raphael (2005). Globalization, poverty and inequality: between a rock and a hard place. Cambridge, UK: Polity.

Michael S (1992, the Limits to Globalization: Technology Districts and International Trade. Clark University. California.