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 countrys 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 worlds 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 MacDonalds 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 McDonalds 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 McDonalds 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. ABCCLIO.California
Caroline & Diana, (2004), The effect of the internet on international trade.Journal of
International Economics Volume 62, Issue 1, Pages 171189
Changkyu C. (2010) The effect of the Internet on service trade.Economics
Letters Volume 109, Issue 2, November 2010, Pages 102104
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.