Name: The Other Woman In Marriage

Reg. No.:       07069373637

Dept.:     Business Administration

Faculty:         Management Science

Group:      C

Level:         400

Course:   International Business

Course Code:          Bus 419

Assignment Topic:  Critique the concept of Globalization and International Marketing from the views of the text Book International Business Management by Munirat Yusuf et.al

INTRODUCTION

Virtually all countries in the world are faced with the realities of increased integration of world trade and capital flows facilitated by rapid growth of information technology and thus, opening up of hitherto, closed societies and economies.  With the collapse of communism and apparent emergence of a unipolar world, the speed of global integration (Globalization),  particularly in trade and capital flows, has gained momentum. 

Trade has grown tremendously in the last 50 years, so also have foreign investment and international capital flows.  There are more multinational companies than ever before – roughly 60,000 multinational companies and their 50,000 foreign affiliates account for about one fourth of total global output. 

DEFINITION OF GLOBALIZATION

Globalization is the process of increasing the connectivity and interdependence of the world’s markets and businesses.  This process has speeded up dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally.  Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet.  In general, as economies become more connected to other economies, they have increased opportunity but also increased competition.  Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen. 

Globalization (Kwanshie, 1988) is a process of expanding economic cooperation amongst states, which does not necessarily imply future breakdown of boarders. 

Globalization (Obaseki, 1999) is simply a process of intensified and broadened interdependence among nations.  The process simply creates a global market place, which with the development of communication technology, can be accessed by virtually any one from any location.

IMPACTS OF GLOBALIZATION

The theories of globalization vary on this topic.  For a decade, they argued that the world economy had changed fundamentally.  They described a system integrated by the market and driven by capitalist energies, which would deliver growth and unprecedented prosperity.  A ‘global era’  of free flowing capital was to open up new opportunities and political, social and cultural life. 

The globalizers predicted rapid development of Africa, Asia and Latin America, even arguing that divisions between developed and less developed countries would become less significant and eventually meaningless.  However, in the face of renewed economic crisis and stark evidence of deepening inequalities and the immiseration of vast numbers of people, globalization has become less strident. 

Positive Effects

Globalization brings immense benefits to countries that are able to harness the resulting opportunities.  Below are some of the positive effects:

      A more effective international division of labour, increased specialization and efficiency in production.

      Increase in Foreign Direct Investment (FDI) inflows facilities

      National income of participants in multilateral trade negotiation increases from more efficient use to domestic recourses, with the removal of domestic distortion and increased access to markets.

      More interaction among people has the potential for improving global solidarity. 

      Efficiency in utilization of world productive resources.

Despite these positive results, many people still fear that the harmful effects of globalization, especially on less developed countries, outweigh its benefits.

Negative Impact of Globalization On Less Developed Countries.

Due to the peculiar socio-economic nature of less developed countries, particularly those in Africa, Asia and Latin America, Globalization has had a lot of negative effects on them in the following areas:

      Inequality in World Wealth Distribution

      Powerful International Corporations Rule the World

      Economic Weakening Policies of the IMF and World Bank

      Dependence on External Factors

      Globalization of Crises, Conflict and Crime

      Increasing debts of Less Developed Countries

      Macro-Economic Instability

      Job Losses

      Globalization of Culture

      Globalization of Disease.

INTERNATIONAL MARKETING

International marketing involves recognizing that people all over the world have different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that are recognized across the globe. While many of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is also necessary to understand regional differences, hence the importance of international marketing. Organizations must accept that differences in values, customs, languages and currencies will mean that some products will only suit certain countries and that as well as there being global markets e.g. for BIC and Gillette razors, and for Coca-Cola drinks, there are important regional differences - for example advertising in China and India need to focus on local languages. Just as the marketing environment has to be assessed at home, the overseas potential of markets has to be carefully scrutinized. Finding relevant information takes longer because of the unfamiliarity of some locations. The potential market size, degree and type of competition, price, promotional differences, product differences as well as barriers to trade have to be analyzed alongside the cost-effectiveness of various types of transport. The organization then has to assess the scale of the investment and consider both short- and long-term targets for an adequate return.

IMPORTANCE OF INTERNATIONAL MARKETING

International Marketing is becoming important in today's world of business! One reason it would become of importance is the cause of a business life cycle. A business creates a product/service. It experiences the 'take off' which is at the start of the cycle, then they experience the 'ascension' this is when the product is gaining credibility and starting to sell. Then it comes to its 'peak' where your product/business is established and sales are at its best. However, you then have a decline thereafter. Now, with International Marketing, you can market your product/service internationally and redo your business's life cycle.  More than 1 time, depending on how much countries you are marketing to. Also, your product/service may seem suited better for an international market, rather than your own country of origin. You may develop a value-added product which is too expensive for the purchasing power of country of origin, and you may need

 BENEFITS OF INTERNATIONAL MARKETING

Traditional economists support the idea of global business and marketing. The theory is that globalization creates even more competition, which in turn will produce higher quality products at an affordable price for consumers. Global marketing of products also improves the living standards of international countries. For example, Diaper Sponge Pants now provides disposable, high-quality diapers to countries like India and China, which before did not have such a product even available to them.

 

REFERENCE:

Munirat O. Yusuf (Mrs), International Business Management (2011); Published and      Printed by Chartered Graphic Press, Abuja, Nigeria.

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