3 im-globalization
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Transcript of 3 im-globalization
Question What is the truest
definition of Globalization?
Answer Princess Diana's death
QuestionHow come?
Broad Definition Worldwide interconnection at the cultural, political, and economic level resulting from the elimination of communication and trade barriers.
A process of convergence of cultural, political and economic aspects of life.
(Giddins, 1999)
What is Globalization?
PositiveSome view it as a process that is beneficial
a key to future world economic development - and also
inevitable and irreversible
What is Globalization?
NegativeOthers regard it with hostility, even fear, believing that
it increases inequality within and between nations,
threatens employment and living standards
and thwarts social progress
What is Globalization?
Major increases in worldwide trade &
Exchanges in an increasingly open, integrated, and borderless international economy.
Economic Globalization
1. Technological Advances
2. Trade liberalization & Economic liberalization
3. Competitive Environment
4. Global agreement on ideology
5. Cultural Developments
Sources of Globalization
Technological Advances have significantly lowered the costs of
Transportation,
Communication, and
dramatically lowered the costs of data processing and information storage and retrieval.
Technological Advances
Trade liberalization & Economic liberalization have led to reduced trade protection
and to a more liberal world trading system. As a result,
there have been significant reductions in tariffs and other barriers to trade in goods
and services.
Trade & Economic Liberalization
Organizations have a wider reach, due to various reasons, and can choose among many nations for their
sources of materials,
production facilities, and
markets, quickly adjusting to changing market
conditions.
Competitive Environment
There is a convergence of beliefs in the value of a market economy and a free trade
system.
A major aspect of this convergence of beliefs is the attempt of the former socialist
states to make a transition to a market economy.
Global Agreement on Ideology
With a globalized and homogenized media, There is widespread use of the English
language for global communication.
Cultural Developments
Ease of International Market Entry
Emergence of new customer markets
Standardized Products
Standardized communication
Lower production costs, cheaper material, outsourcing, leading to reduced prices and increased customer value
Implications of Globalization on International Marketing