Specialization and Global Markets

Printed Page 460

The outsourcing and offshoring of many jobs and the breakdown of global economic borders were bolstered by trade agreements made among national governments in the mid-twentieth century. These included NAFTA (North American Free Trade Agreement) in 1994 and the creation of the WTO (World Trade Organization) in 1995. Such agreements enabled the emergence of transnational media corporations and stimulated business deals across national borders. Technology helped, too, making it possible for consumers around the world to easily swap music, TV shows, and movies on the Internet (legally and illegally). All of this has in turn accelerated the global spread of media products and cultural messages.

As globalization gathered momentum, companies began specializing to enter the new, narrow markets opening up to them in other countries. They also began seeking ways to step up their growth through synergies—opportunities to market different versions of a media product.