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Future trends
Global trade depends on a stable financial climate and security to build busi-
ness confidence. The financial turmoil in 2008–9 and the subsequent crisis 
in the Eurozone from 2011 slowed down the pace of globalization and the 
amount of foreign direct investment. The threats of international terrorism, 
including cyber- terrorism, piracy off Somalia and continued financial insta-
bility have contributed to a decline in the amount of international aid being 
given to the LDCs. In addition, there is the problem of the high rate of debt 
and debt servicing affecting many countries.
The Fairtrade Foundation was set up to increase the sales of Fairtrade 
products. It is an example of the increased pressure to obtain a fairer price for 
the workers’ crops in LDCs. The Fairtrade organization aims to provide 
producers in LDCs with a basic price to cover production costs, every-
day expenses and a small premium to be used to invest in community 
products such as building schools, health centres and improving the water 
supply. The lives of cotton farmers and their families have in this way been 
improved, particularly as more companies are buying Fairtrade cotton as 
part of their ethical trading policies.
Attempts by Fairtrade to improve the living standards of producers 
(mostly farmers) in LDCs have had some (albeit relatively limited) success. 
A total of 49 countries participate in the scheme to sell Fairtrade products 
that give a better deal to producers with the premium customers pay, 
GLOBALIZATION OR LOCALIZATION
Companies resolve this conflict by meeting local preferences and adapting to local 
cultures by a process of ‘GLOCALIZATION’, which is:
GLOBAL INTEGRATION + LOCAL RESPONSIVENESS
Figure 11.3 ‘Glocalization’

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220 Cross-Cultural Communication
for example, in coffee shops such as Costa and Starbucks. Café Direct is 
a non- profit coffee- making organization which attempts to guarantee a fair 
price to coffee growers. The principle behind Fairtrade ventures is to assist 
trade and reduce the reliance on direct aid as the best way of getting people 
out of poverty. However, the West continues to subsidize its own agriculture – 
for example, the USA has subsidized its own cotton, keeping the cost down 
in competition with African producers.
Environmental issues will continue to assume importance as the world 
is faced with a growing shortage of raw materials, fresh water and increas-
ing energy requirements. Large global companies will continue to invest in 
new areas in the search for resources both under the ocean and in remote