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Globalization refers to the process by which regional economies, societies, and cultures become integrated through a global network of political ideas and through communication, transportation, and trade. Globalization is driven by the combination of factors such as economic, technological, socio-cultural, political and biological ones. This enhances the development of transnational ideas, means of communication through acculturation. The film industry is one of the major sectors that have been affected by globalization. It has increasingly risen to be a major means for economic growth and exports leading to attraction of major interests and more exposure. The global economies have indirectly shaped the industry differently by affecting the organization with regard to production and consumption rates of different economies.

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Emergence of new producers and consumers has seen the industry change, where the once dominating economies are being challenged while new one arise causing competition in the market. Previously unite kingdom was dominating in the exportation of films but emergence of the Asian region brought competition that caused change in the industries (Jagdish 4).  Exportation of films globally lead to increased demand hence emergence of new producer to satisfy the market.  The tendency of outsourcing labor from the labor intensive production enhances distribution of resources globally (Schmitz 123). This has caused the need to develop new technologies that ease the production and distribution of goods and services across borders. When studied as a global phenomenon, the film industry is a laboratory of different and emerging strategies in building and sustaining competitiveness even up to the global level.

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Financially the global economy has enhanced emergence of financial markets and improved access to external financing for borrowers. Investors are globally funding the potential projects and ideas such as creative cultural ideas which are the major resources for the film industry. This has enhanced trading with national currencies and improved global investments. The development of technology has encouraged need for global information systems which synchronize different cultures yielding an interconnected system. This is more pronounced with the growth of the information technology sector which is the major part of the film industry.

Though the interconnected system can be dangerous since failure in one part can affect the others, the system retains stability. With globalization companies may less production cost at the expense of its workers causing less worker protection and low health benefits. This may lead to compromised health policy globally. Moreover, the globalization has both positive and negative effects on the economies with regard to politics, cultures and business competition, legal and ethical fields (Jagdish 4).

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