• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain what is meant by market globalization(TM). Identify and analyse the key drivers of market globalization over the last 30 years

Extracts from this document...

Introduction

Explain what is meant by 'market globalization'. Identify and analyse the key drivers of market globalization over the last 30 years. Market globalization refers to national and multinational global customers who search the world for suppliers but use the purchased product or service either in one country or in many (Parker 1998). With this is mind I shall go on to identify the key factors of this global phenomenon, highlighting the advantages and disadvantages with appropriate examples to demonstrate. I shall mention in detail how trading blocs, less economically developed countries, the World Trade Organisation, BRIC countries, national culture and the internet all merge with one another and over the past 30 years has caused globalization and whether or not it will continue at this unstoppable pace. The term 'globalization' has been explored by many, leading to a strong debate on the actual meaning of the word. Despite the various views and ideas on it, there seems to be a broad similarity which pops up more times than one, this is that we are constantly surrounded and live in a period of globalization and it is ever growing at a rapid rate. ...read more.

Middle

This factor will continue to accelerate globalization because even thought the predominant LEDC's have now been occupied by multinational enterprises there are still some countries that have been left out like Africa and southern American countries which will also no-doubt ably be gobbled up into being used for its cheap labour, scarce workers rights and over keen governments. My next point will cover the important but controversial issue of 'national culture' which businesses face with expansion into other countries. One of the vital factors a company will have to consider when they internationalise is the new culture they are about to operate in. This could mean changing marketing, human resource management (HRM), the product itself, or the management styles. There are two ways a firm could approach this complex issue either by 'The Convergence perspective' (Kerr 1960; Levitt 1983) which suggests that a brand or company will be 'accepted' by the country and the way the business is run in terms of management practices, slots in with the national culture. Brands such as Coca-Cola, Nokia and Nike have standardised products and/or practices which can be used no matter which country they operate in. ...read more.

Conclusion

I do believe that to an extent trading blocs and FDI are mutually supporting on one another, as opening up markets to free trade has encouraged more FDI than it would have if it had not been liberalized. Nevertheless trading blocs and FDI cannot improve global economic growth by itself. The benefits of trading blocs and FDI to particular sectors of the industry will rely not only on their theoretical comparative advantage (i.e. China's) but also on countries abilities to restructure and upgrade operations through innovation, technological improvements and market experience to take advantage of market opportunities. All factors such as industrial output, increased productivity and efficiency within industries, high consumer saving, early consumption and government policies have all been impacted on by Globalization and so has the outcome of global economic growth. Globalization has the potential to continue its rapid growth in the foreseeable future. The factors that have propelled growth over the past 30 years are still in place. The world's economy is still a long way from a fully 'mature' status, where growth rates start to tail off but as long as Globalized countries maintain an open attitude towards foreign investment and invest heavily in infrastructure, innovation and other capital, it will continue to grow rapidly. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Micro, Small and Medium Enterprises (MSMEs) have been recognised as one of the ...

    The imperatives are: * National Rural Employment Guarantee Act (NREGA) would have to be more effective so that the Indian economy can incrementally move away from the concept that agriculture is the end of rural markets. * For making Indian infrastructure investment attractive, high cost of debt to infrastructure should be addressed in some form.

  2. Describe the shifts in the world economy over the past 30 years. What are ...

    The damage caused to the oil-ring in the Gulf of Mexico, which accounts to 25 per cent of US oil supplies and around 10 per cent of the world's supply of oil, was so great that oil per barrel increased by more than $20.

  1. Innovation For Business Success. It is possible to be innovative in both large ...

    In selling solutions to customers that are outside the box, there are sometimes challenges of course, but the self belief, the track record, and the persistence/ patience characteristic lead to enough successes to make this a highly viable strategy and form of innovation.

  2. General Management - organisation, leadership and theories.

    with things in the company, tell people what is needed for the desired results and then expect things to happen-a gross simplification of the process. You would be surprised how many leaders lead this way. In light of the psychological reality that people only do what they want to do,

  1. Sustainability Report. Aims: To analyse and study the key strategies towards environment and sustainability ...

    However, most of the social and environmental impacts are less unambiguous and the measurement and linking to financial performance will be too difficult. It is not always possible to regulate and control the social and environmental impacts. For example, few of the external costs will be very difficult to assign

  2. Strategy Marketing - Nokia

    It continuously launches new models with new and advance features in a new concept either appearance design or functional restructuring. Both allowing Nokia continue to be the leader of the mobile phone manufacturing industry and enjoy about 30% of the global market share under the fierce competitive environment.

  1. Analysis of Operation of Toyota

    The fuel tank is unusually small, since Prius drinks 50% less fuel than conventional cars. Electric motor is supplied by the 40 pieces of Ni-MH (Nickel-Metal Hydride) batteries located above the rear axle. The batteries weigh a lot less than pure electric cars because of the help from petrol engine.

  2. This report aims to identify the key issues organisations face as a result of ...

    work-culture, well-established brand name, and most importantly, shared values and common direction. The previously untapped market for a healthy fast food alternative amidst growing demands by consumers who are more educated than before was seized quickly by Allis in what can be said is a blue ocean strategy, where companies

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work