• 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. Legrand Company Analysis. Legrand is the global specialist in electrical and digital building infrastructures.

    * Make activities meaningful. * Reduce the risk of uncertainty. * Facilitators coordination. * Facilitators decision making. * Promotes creativity. * Provides basis of control. * Leads to economy and efficiency. * Improves adoptive behavior. * Facilitates integration. 2. Organizing Organizing plays a central role in the management process.

  2. General Management - organisation, leadership and theories.

    Exhibit 4.3.1. A simple model of motivation. 'Motivation' views the commitment of the individual to work and to his workplace from the point of view of factors originating within him, from the point of view of individual needs, likes and preferences.

  1. International Business and Global Companies. The main focus will be Multinational Enterprises: MNE. MNEs ...

    - Ongoing integration of activities on a worldwide basis. What are the main characteristics of "Global"? - Standardisation of large international market segments - Product standardisation - Reconfiguration of the value chain (distribution...) - Global marketing function - Multi-point competition - Governments play two roles: "players" and "referees" Multinationals: The USA has identified over 45,000 MNEs, but the largest

  2. What is Entrepreneurship & how do entrepreneurs identify business opportunities?

    Truly great entrepreneurial ideas stem from change. For example, the evolution of computers leads to technological change. This in turn led to inventions of hand held mobile phones that also doubled as computers, examples being items such as the iphone/ipad, smartphones and portable laptops.

  1. Shareholder (liberal market) vs stakeholder (cooperative market) views and economies review the surrounding ...

    by maximising the value of their stake in the business and not to employ strategies to fulfill the desires of other stakeholders i.e. employees, suppliers, community etc. The other group that is instrumental to the value of a company are stakeholders.

  2. Report on Bata in India

    Urban Wholesale: Bata?s Urban Wholesale Division consists of 12 depots located across the country selling Bata products through 180 distributors and over 20,000 independent shoe dealers. The focus is on selling volume products catering to complete family needs. The division continues to grow with and deliver great results with a

  1. The Future of National Oil Companies (NOCs) in a Globalized Oil Market

    Value Chain Figure 1.2- Competition Levels and Participation in the Petroleum Industry Figure 1.3 Liquid Productions versus Reserves Figure 1.4 State Choices and National Depletion Policy 11 Fig 1.4- Founding dates for Selected National Oil Corporations 15 Figure 4.3 Revenue Employees versus Number of Employees, 2004 28 1.0 Introduction Whereas

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

    Averaging a growth of 28 stores and with a group turnover of more than $AUD 85million per annum, there are more than 200 stores around the world. In 2001, Boost started its franchising program with franchisors generally being attracted to the unique retail concept, good marketing support, interactive and fun

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