Globalization of markets means the capacity to produce and/or sell products/services in international markets in close competition with other similar entities. Just as domestic markets become globalized, the same goes for international trade. However, there exists a vast open international competition with regard to virtually every market around the world. Let’s take a look at some of the most notable examples.
No Market is Monolithic
There is a fundamental principle of economics that says that market segments are differentiated by culture, tradition, standards of living, and more. Internationalization has produced profound changes in the way companies do business – and their customers do business. In fact, competition between businesses has intensified as markets have become more connected.
Market Competition is The Key to Globalization of Market
Many of the largest economies in the world have been successful at providing jobs for a wide range of people. That is because they have adapted to globalization by attracting new firms to the country – while at the same time, developing countries have made efforts to attract investment capital from the developed world.
Openness Has Generated Growth
The ability of a country, or an industry, to adopt new technology and improve internal procedures has been crucial for globalization. Without this dynamic, it’s hard to imagine any meaningful improvements in competitiveness. The rise of the Information Technology Industry – or ICT – has been one of the biggest catalysts behind globalization. In particular, the rapid adoption of information technology by businesses has created a pool of highly educated workers that can be used to manufacture world-class products.
Openness Increased Global Trading
As globalization has increased openness, there has been a marked increase in the number of trade transactions. This has resulted in an enormous increase in the volume of trade – which has helped the developed world has become a major exporter of goods. The development of the Asian economic powerhouse – the ASEAN – has been crucial in pushing the globalization of markets.
Globalization of Market Helped Create A Unified Market
There is no doubt that the growth of globalization has enabled companies in different markets to coordinate their activities. For example, it has allowed manufacturers in the United States and Japan to provide cars and other vehicles to consumers in Asia. It’s also made it easier for manufacturers in Europe and Asia to coordinate their activities regarding automobiles and other types of goods.
Globalization of Market enhanced international cooperation
One of the biggest developments of globalization has been the development of open market systems. Through globalization, there is now no longer a need for barriers to prevent companies from selling to each other. This aspect of globalization has been responsible for the opening up of many international markets – which, again, helps the developing world develop more rapidly as compared to the rest of the developed world.
Openness Benefits All
The globalization of markets has allowed individuals and businesses to access foreign markets with ease. With globalization, it has become possible for countries in the West to buy products that are sold in Asia for less. This factor has been responsible for encouraging people in the developing world to purchase more durable products. By opening up their markets, businesses and individuals benefit from globalization.
Globalization of Market is A Positive Thing
There is no denying that globalization has had its fair share of drawbacks. Experts in the business world admit to the expansion of crime, lower quality of jobs and the displacement of jobs due to globalization. These problems do not, however, outweigh the positives of globalization. “Globalization has helped people who would otherwise not have had the opportunity to pursue their dreams of owning a home or buying a car,” globalization expert Paul DePodested states. ” Globality has also benefitted poor countries that were otherwise hopeless to produce the kinds of goods that were available only in developed countries.”
Globalization of Market Has Changed The Rules
Despite the negatives that are associated with globalization – a few negative effects do exist. One of these effects is the dispossession of property by companies that move their production factories to lower-cost destinations. Another is the loss of local language and cultural identity when companies from one country open up operations in another country. While globalization has certainly opened up some gaps, it has also opened up opportunities for people all around the world.
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Globalization of Market is A Good Thing
This is a view that many people are beginning to agree with. Globalization allows people in different parts of the world to be able to access the same goods and services. While some globalization has created massive shortages in some markets (such as grain in China), the vast majority of the benefits of globalization have allowed people to access these goods and services at prices that are consistent with their income. ” globalization has opened the door of opportunity for many, but it is also important to remember that it has not necessarily opened the door of hardship for many,” says Dr. William Dougherty, director of research and policy for the National Association of State Bankruptcy Alternatives.
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