Globalization is having a significant impact on business decision-making, on stimulating international trade and the creation of international marketing.
It all started with freeing trade.
The expansion of free international trade with fewer protectionist measures and the growth of multinational businesses have speeded up the process of globalization in recent decades.
More and more large domestic companies are becoming multinational companies to avoid protectionist policies and as the markets for products and services becoming globalized.
This initiated the process of globalization.
Globalization is the process of integration and interdependence of the world’s economies by allowing the worldwide movement of products, capital and labor unrestricted by trade barriers.
The result of globalization is that markets, cultures and tastes have converged at an accelerating pace.
Globalization initiated the existence of global business environment.
Globalization influenced business strategy.
The appearance of globalization has impact on marketing strategies.
The main features of globalization that impact business strategy include: a rise and growing importance of international trade, rise of multinational businesses, increased competition from multinational businesses in all countries and free movement of workers between countries.
Factors affecting globalization include: technological change, falling transport costs, business deregulation, trade liberalization, changing consumer tastes, growth of emerging markets and competition, etc.
And then international marketing was born.
These aspects forced the creation of international marketing following the emergence of businesses that think globally about their strategy. What is means for marketers is that they need to become ‘international marketers’ to efficiently produce and sell company’s products in different countries.
Major effects of globalization on business strategy include increased competition from both domestic and foreign businesses, deregulation on industries such as in the telecommunication industry in the UK and more scope for innovation by smaller players. Additionally, meeting consumer expectations in different countries is challenging as global markets make it harder to do marketing. However, when international marketing is done right, the firm can achieve various economies of scale.
As our modern world has been increasingly becoming ‘one large market’, international marketing is of increasing significance in many years to come.
