APPLIED MANAGEMENT

PROJECT

XLB 03-6

Reflective Analysis

NAME OF THE STUDENT :

STUDENT ID NUMBER :

MODULE NAME AND CODE : Applied Management Project XLB-03-6

DISTRIBUTION LIST : Mr. Vincent Ong and Mr. Peter Patrick

SUBMISSION DATE : 17th December 2010

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 Table of contents

1. Introduction 3
1.1 Defining globalization 3

2. Current trends in globalization 5

2.1 Controversies on globalization 6

2.2 The role of WTO 8

2.3 Four levels of globalization 9

3. Globalization characteristics 10

4. Globalization: Good or Bad? 13

4.1 Globalization – A good one 14

4.2 Globalization – A bad one 28

5. Effects of globalization on company Marketing strategies 32

5.1 Market Opportunities of firm achieved by Globalization 33

5.2 Global market threats on company marketing strategy 34

5.3 Cooperative arrangements among companies 36

5.4 Marketing challenges and solutions to the global company 36

6. Recommendations and conclusion 38

7. References 40

8. Bibliography 42

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1. Introduction:

Globalization is a set of process that involves interactions and integration

of people, organizations and governments of different nations around the world, which
are driven by international transactions like trading, investments and information
technologies. This process has a wide range of effects on culture, religion, economic
factors, political systems and advancement of living conditions of societies around the
world. The Globalization is not the new concept; it is being used by the people and later
by the corporations from the past thousand years for importing and exporting goods
from large distances such as through the well-known silk routes across Central Asia that
connected China and Europe in the Middle Ages. Since then from centuries till today
people and corporations have continued their investments in other countries to make
their businesses as global enterprises. The changes in international policies and
technological developments have boosted the cross-border investments, trades and
migrations have driven the world into a new phase of economic developments. Since
1950, the foreign investments and trades have tremendously increased and many
governments have adapted to this new wave of globalization with their free-market
economic systems to increase their productivity and created a new opportunities for
global trading and investments. Governments have also made international agreements
and reduced its barriers to commerce in order to promote international trade,
investments and services. Technology as an important part of globalization has made
many changes to the people all over the world in acquiring advanced technology and
developing their standards of living with the available services and goods from different
parts of the world. The faster transmitting of information and technology through
globalization around the world has given every individual, investors, and businesses a
new tool for identifying themselves and in pursuing new economic opportunities.

1.1 Defining Globalization:

Globalization is a term that is heavily used currently all over the world but
its meaning remains obscure to many. According to Jan Aart Scholte the term

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“globalization stands out for quite a large public spread across the world as one of the
defining terms of late twentieth century social consciousness”. However there are many
definitions that lack in defining what is globalization and defines what it is not. Merely
such kind of definition is given by James Rosena, where he states that Globalization is
not the same as universalism or globalism; it is entirely different from these two terms in
which globalism is about the affairs of the states aspiration that are shared to all parts of
the world that is collectively designed by consumers and producers, in order to solve the
common problems in the world. Whereas universalism is about the values that brings all
humanity together.

Another definition that offers a little by its operational values is given by

Anthony McGrew, which states globalization is a process that involves multiple linkages
and interconnections between the nations to transcend and to bring the nations together
for the formation of modern world system. It defines the way in which the events,
activities and decisions are carried from part to all other parts of the world’s individuals
and communities.

Moreover Philip Cerny suggests, globalization is a word that redefines the

association between authority and territorial. Globalization shifts the authority from state
level to the supranational level and to sub national levels, perhaps it made easy to
grasp into operational terms however, valued a little in casual terms. Also Robert Z.
Lawrence supported in his definition that globalization shifts authority especially in local
and regional level. Furthermore Philip cerny adds elsewhere and stated that:
“Globalization is defined here as a set of economic and political structures and
processes deriving from the changing character of the goods and assets that comprise
the base of the international political economy—in particular, the increasing structural
differentiation of those goods and assets”.

Although the statements of McGrew and Philip Cenry on Globalization

defines completely different, it is identified that both are true in which they offers a little
operational values and different insights on it. Over all the concept of globalization is

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defined by different authors in their own way, in which it is true that each of them tells
very little about globalization.

2. Current trends in Globalization:

The Globalization has now become as a process to increase the

connectivity and communication of the world-wide markets and businesses. The
technological advances have made easy for the people to communicate, travel and to
do businesses internationally. Telecommunications and internet are the two major
driving forces for the rise of globalization. As the economies of the nations are
connected with each other it has raised the opportunities for the development as well as
increased the competition between them. Now it has become as a most common
feature of world economics, that has given rise to the entrance of fight against the most
powerful pro-globalization and anti-globalization activities. There are many
controversies evolved on globalization where the pro-globalization proponents argues
that Globalization has allowed many poor nations to develop their economy and raised
their citizens living standards while on the other hand its opponents, the anti-
globalization claims that the international free-market has just benefited the
multinational companies by outsourcing their projects in order to gain more profits at the
expense of local culture, local enterprise and the availability of low cost labour locally.
There is no doubt that globalization had a number of positive effects on the nations and
businesses all over the world. However, in the recent years the concept of globalization
has undergone a reassessment on its positive effects. Indeed, the widespread of
complaints against the WTO (World Trade Organization) and the increase of consumer
boycotts against the multinational company’s practices has raised the awareness in
public about the hazards of globalization.

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2.1 Controversies on Globalization:

Globalization has given access to companies to enter into the wider

markets that provided consumers with greater variety of goods and services to choose.
Though globalization gives companies access to wider markets, that doesn't mean all
the parties who are involved in trade always share the benefits of globalization.
Unfortunately, developing nations are often the losers where the potential benefits of
globalization are mostly needed by them. The Business Week article noted "the
disruption of whole societies, from financial meltdowns to practices by multinationals
which would never be tolerated in the west is the downside of global capitalism."All sorts
of worker, environmental safeguards and consumer are enacted by industrialized
countries since the turn of the century, and there is a strong tradition for civil rights.
However, the global economy is still rolling as in the robber-baron age.

The Positive terms of Globalization are viewed, as key driving forces in

promoting worldwide economic development by some people, who are its proponents.
However, unrestricted worldwide trade will only serve to increase the inequalities
between developed and developing nations is believed by others. The experiences of
developing nations with globalization vary in a great deal in accordance with its pros
and cons, and Globalization offers both opportunities and risks for developing nations in
reality. The economic growth is achieved by some regions like Asia as a result of
integrating quickly into the global economy, whereas increase in political instability,
poverty, and environmental degradation are faced by other regions like Africa since they
became involved in international trade. The Business Week article stated that, “the real
question isn't whether free markets are good or bad, the real question is that why the
markets are producing such wildly different results in different nations. And In order to
make all the Business, government leaders and workers to realize the benefits of global
markets, it is essential to figure out the answer for it."

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 How advanced economies and multinational corporations could help
developing nations to share in the benefits of globalization was a great deal of debate
which was there in the late 1990s.In order to begin catching up, some experts claim that
developing nations needs relief from its debts, an increased flow of technology and
direct financial investment, and an unrestricted access to enter into the markets of
advanced nations. Unless the leaders of the developing countries shows an interest and
compliance to establish a stable government and willing to invest in the education of
their people, others claim that these measures are pointless and bring nothing change
with Globalization. The Business Week article argued on "Governments first must
deliver political stability, sound Foreign investment would otherwise likely lead to
government corruption and the exploitation of workers”.

However, it is just not the developing nations that are limited to face the
potential problems with Globalization. Indeed there are problems with globalization in
under developed and developed nations as well. Workers from advanced economies,
especially those who works in unskilled, hard jobs and come under labour unions feel
that increased competition from developing nations has displaced their wages to low
from high. The transition making to skilled jobs and service-oriented industries is not
achieved by few of these unskilled workers and letting them back in the society. The
claim of other critics of Globalization is that the sovereignty of nations reduces,
particularly in the aspect of economic policy making, only when integration of Global
economy happens. Under the rules of world trade, they are worried that advanced
Nations are going to face the limited choices in tax and monetary policies. It is now
created as a complex web of problems for Globalization by overlapping the concerns of
both developed and developing nations. Globalization has also raised a problem
regarding the nations that are trying to force other nations to follow their values.
According to Business Week "Balancing growth with environmental and labour
regulations is wrenchingly complex in countries where people live on the margin”. In the
World Trade Organization (WTO), environmental issues or discussion of labour is
resisted fiercely by many poor Countries as they feel that the process will be captured
or hijacked by western protectionists. Shielding jobs at home by imposing standards

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that drive up labor costs in emerging markets to levels where developing nations can't
compete is the main feeling that western unions keep in their minds.

2.2 The Role of the WTO:

Number of the controversies over globalization are focused on the World
Trade Organization (WTO) in the late 1990s which was established in 1995 to provide
world trade and settle disputes between countries, whose headquarters are in Geneva,
Switzerland and which had 134 member countries in 1999, in which almost 3/4 th of
these are developing countries. An article on “Finance and Development” by Simon j.
Evenett says that "by providing a mechanism for resolving disputes, strengthening the
credibility of business reforms, facilitating business reform and promoting transparent
business regimes that diminishes transaction costs, the WTO serves the developing
nation's interests."

WTO became a key source for controversy over globalization shortly after
it was established. In Steve Wilhelm Puget’s “Sound Business Journal” it was noted
that, “In one point of view, the World Trade Organization has just sufficient enforcement
powers to aid countries work out their differences and known for its benevolent United
Nations of trade."In another point of view, the legislative body and the courts operate
outside the scrutiny of anyone who's not a government leader or corporate lawyer in the
WTO which is a menacing, corporate-dominated world government of trade. And from
this point of view the power to override national laws, including environmen tal
protections is also given to it in addition to the organization's power to adjudicate trade
disputes.WTO compromises the Sovereignty of its member nations, in a sense”.

The rights of workers and protection of the environment were the two main
issues embraced by anti-WTO activists. Wilhelm noted that,” Many impacts fall on the
people who provide labour to produce things, and the environment that provides the raw
materials and absorbs the effluent, as production and consumption grow around the
world." Most of the people who oppose WTO are worried that Global free trade may
become as a big threat to the hard working labour and environmental victories in USA

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and also to other developed nations. Examples of which are, the fight of activists
against the WTO-rule as it is unable to protect the import of shrimps that were caught in
nets that also endangered species of sea turtle by United States.

The loss of American jobs due to outsourcing and the poor environmental
and social records of MNC’s (multinational companies) that are operating in developing
nations were also the concerns of protester."Once it was promised that the simple
spread of markets would melt poverty, dissolve dictatorships, and integrate diverse
cultures, today the mere mention of globalization generates anger, discord and
accusations", stated in Business week. “The unrealistic, heady days of globalization
appear to be over."
 

2.3 Four Levels of Globalization:

Most Often, Globalization refers to the improving degree of connection
between several nations and their economies. However, it is also defined as the efforts
of organizations and enterprises to enter into foreign markets by expanding their
operations. The importance was gained to this definition with the introduction of the
Internet, which gives the potential to achieve global reach in their operations to all
companies.

Trade normally operate at one of four basic levels of globalization is what

was written by Jennifer Derryberry in Sales and Marketing Management. The level one
is a multi domestic company at which, the trade contains various independent units that
operate in different nations, which can be easily run with a little communication among
them. The level two is an international organization that manages and operates
branches in other nations directly from its headquarters in one country. And at which the
company, rather than making a true effort to integrate into the global company it is likely
to impose its home country bias on other markets.

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 The level three of globalization, a transactional company that contains
freely integrated business operations in various nations. And at which, to address the
local needs of operations in each nation the company makes a greater effort. The level
four of globalization is a true global company. The World is viewed as a single market
by this type of business, for its several operations around the world it develops an
overall strategy for its business and to ensure its global success it applies the lessons of
each nation. This is the ideal level for a globalizing organization, however that it is not
so easy to achieve is what is noted by Jennifer Derryberry in her article published in
Sales and Marketing Management.

3. Globalization characteristics:

Globalization is not just a term used in the business atmosphere, but a

course of action that helps to improve the relationship between countries. The most
popular areas where globalization plays a major role can be listed as: Politics, Economy
and culture.

KFC (Kentucky Fried Chicken), a restaurant that has started its operations
in a small village in America, now has its franchises all over the world is a good example
of globalization. There are many such examples like films of a particular community
being played at different parts of the world and the United Nations all of which in present
situation represents globalization.

The globalization process can be cut down into its characteristics like:

i. Technology advancement
ii. Flow of capital and people
iii. Knowledge transmission
iv. NGO’s (Non Governmental Organizations) and MNC’s (Multi-National
Corporations)

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i. Technology advancement: The most important feature that makes the globalization
possible is the advancement of technology. The technology development in terms of
transportation and communication are the key factors that drive the rest of the
characteristics of globalization.

In the past, it was of great difficulty for people to travel to places both of
short distances or long journeys and also in communicating with people at other parts
of the world. In the eighteenth and nineteenth centuries, the distances became to
seem less with new means of transportation emerging like steam engine, steam ship
and the airplane. But, with the growth of technology in today’s world these are of no
big deal. With the number of flights available and money, people can travel from one
side of the globe to other in hours and communication is also very fast with the use of
internet, mobile phones, fax and video conference calls today to that of the telegraph,
television and radio in the 18 th and 19th centuries and to that of the ancient times. For
example, there used to be no mode of communication between people of different
parts in the ancient times and with the invention of telegraph, people used to
communicate. Though telegraph could be used as communication medium, it took
much time like the first telegram from queen Victoria to the American president in
1852 took 16.5 hours. But later as the whole world is wired this duration was
decreased and with the satellites in present world communication is a matter of
seconds. In other words it can be said as; technology is shrinking the gap between
places and people.

Technology has not only decreased the communication time but also the
cost incurred in the communication. For instance, a short duration call from New York
to London in 1930 (early when telephone was invented) cost around 300 dollars,
whereas it was around 0.08 dollar in 2003 and now it is very much cheap costing only
around 0.02 dollar. Also the technology has become much easier to practice now
days which is evident from the diagram below.

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 Figure1: Growth of internet users

(http://yaleglobal.yale.edu/sites/default/files/flash/about/globalization/PART2-
2/Presentation_Files/index.html)

ii. Flow of capital and people: People living in least developed countries or countries
with no safety are moving away to the developed or developing countries making use
of the transportation facilities available, in a way to have a secured life and economic
growth.
Also, with the advancement of technology like faster means to transfer
money, people in different parts of the globe are investing in the developing
economies like China and India hoping to get good returns as these economic are
growing at good speed.

iii.Knowledge transmission: Knowledge transmission is nothing but diffusing

knowledge i.e. if anything innovative is done at some place of the globe, it is sure to
spread to rest of the world in no time with the technology available. The innovation of
automotive farming machine in some place of Asia is spread to every farmer (around
the globe) who does agriculture manually.

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iv.NGO’s and MNC’s: There are certain concerns that are raised and require global
awareness and there are some organizations like the NGO that deal with these
issues. These NGO’s bring in the people regardless of the borders and is in no way
related with the governments, but make people all over the world aware of the
concerns raised like global warming, child labor and need for education. Examples for
NGO’s are Amnesty international and UNICEF.

As said before, the improvement of technology has bridged the gap

between countries and this led to form new markets. With new markets forming, the
MNC’s are formed with businessmen all over the world to captivate these markets.
One of the most important reasons why organizations are becoming global is the
employment wage. A task in one place can be done in other place with fewer costs
as labor in these places is cheaper than that of the original place of the organizations.

In a way, globalization is making the importance of borders less giving

high priority to grow economically.

4. Globalization: good or bad?

Just like a coin has two sides, globalization also has two sides: good and
bad. For example, globalization can be compared with that of fire. If used properly, fire
can provide good facilities like cooking food, sterilize machines, can be used for iron
and keep houses warm. In the same if it is used carelessly it would create problems like
killing people and burning houses.

According to Friedman “Globalization can be incredibly empowering and

incredibly coercive. It can democratize opportunity and democratize panic. It makes the
whales bigger and the minnows stronger. It leaves you behind faster and faster, and it
catches up to you faster and faster. While it is homogenizing cultures, it is also enabling
people to share their unique individuality farther and wider”.

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 Here we shall look at the areas where globalization is treated to be good
and then move on to areas where it is treated as bad.

4.1 Globalization - A good one:

There are many areas where globalization is considered as good. Let us

discuss each one by one as below:

4.1.1 Globalization of Television supply chain:

Television had a major part in decreasing the communication gap around

the world and bringing it to one. The manufacturing of different parts of the television in
different parts of the world (globalization production) has played a huge part in bringing
down the price of the television and also making it available for people in least
developed economies. This is clearly explained as:

The price of the color television set in 1956 was $500 which is equal to
$3,300 in present days if adjusted to inflation changes. This is very big amount for a
television as it is only $130 (lowest rate) now. The same television which is $130 now
would be priced at $700 if the production network is not globalized. As the television
manufacturing or production is a process that is allocated globally because the parts
that make up a television are from different countries.

The cost of each component to the whole television set and the countries
that source the component are:

CRT (Cathode ray tube): USA, UK, Mexico, Thailand, China, India, Italy, Poland,
Lithuania, South Korea, Japan, Taiwan, Hong Kong, Malaysia and Australia. It costs
55% of the total cost.

PCB (Printed circuit board): USA, Mexico, Brazil, Turkey, Germany, China, Taiwan,
Vietnam and Malaysia. It costs 20% of the total cost.

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Radio frequency (RF) tuner: USA, Mexico, China, Taiwan, Singapore, South Korea
and Hong Kong. It costs 3% of the total cost.

Deflection Yoke: China, Taiwan, Indonesia, South Korea and Malaysia. It costs 3% of
the total cost.

Flyback transformer: China, Taiwan, South Korea and Malaysia. It costs 2% of the
total cost.

Cabinet: This component of the television set is manufactured locally. It costs 7% of the
total cost.

Packaging: It costs 3% of the total cost.

Others: It costs 7% of the total cost.

These manufactured components are assembled in different countries like

Angola, Argentina, Australia, Brazil, Canada, China, Columbia, Cote d’Ivoire, Ethiopia,
France, Germany, India, Indonesia, Italy, Jordan, Korea, Malaysia, Mexico,
Netherlands, Peru, Philippines, Poland, Russia, Spain, South Africa, Taiwan, Thailand,
Turkey, UK, USA, Venezuela, Vietnam and Zimbabwe. The market for television all over
the globe is 152 million units per year and of these 80 percent of the production is
accounted by just 7 countries.

China – 40 million

Mexico – 35 million

Turkey – 12 million

USA – 12 million

Brazil – 11 million

India – 6 million

Poland – 5 million

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 From these assembly points, the television sets are delivered to the
nearest stores where they are sold. Therefore, the television sets do not travel much as
that of the manufactured components. Because of this i.e. shipping millions of individual
parts that are purchased at competitive price than to produce the whole set at one point
and then send to different parts of the world, the price of the television is less which
would otherwise be more without globalization.

This globalization also has other advantages for countries as individual.

The countries that got benefited by the globalization of television supply chain are
Ethiopia, Turkey, China, Mexico and India. Let us the story of each country as:

Ethiopia: It gets the Cathode ray tube from Europe, Chassis (printed circuit board) from
Turkey and other components locally. It then assembles it. The year wise effect of
globalization:

1995 – The gross domestic product (GDP) of $98 exceeded the cost of a television set
($500) i.e. one TV is affordable to 250 people.

1999 – Start of an assembly factory and TV kits by United Tebarak leading to a drop in
price of the TV set (21 inch) by 30%.

2001 – The factory with a staff of 47 has increased its manufacture capacity to 50,000
units per a year. Also contributed 40 percent of the components locally and serving the
need in Eastern and Southern Africa.

On a whole, this has not only decreased the product price but also created
job opportunity for the locals, gave rise to minor industries and increase in export
revenue which in turn all contributed to the country’s economic growth.

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Turkey: It gets the Cathode ray tube from Europe, RF tuner, deflection yoke and
flyback transformer from Asia, Chassis (printed circuit board) from Turkey and
assembling in Turkey.

The total contribution made by the country to the world is mainly from two
companies Beko Electronik and Vestel Electronics.

Serves mostly the needs of Europe and Middle East.

The cheap models from Hitachi, JVC, Samsung, Mitsubishi and other local
brands in the market are served by Vestel. It is also in a plan to open a manufacturing
plant in Mexico so that it can make use of the needs of the North America by makimg
most of the free trade policy.

China: China produces TV’s on a very large scale. It fights on economies of level, low
wage and joint ventures with local bodies. The year wise change by globalization:

1970 – It could afford only one TV per every thousand people.

1973 – It started assembling local TV sets.

2002 – Contained about 60 production plants.

The production on large scale has lowered the cost of the materials
thereby decreasing the overall price of the product. Today, China could afford 292 TV
sets for every thousand people which is huge development.

Mexico: For assembling the television set, it gets flyback transformer and deflection
yoke from Asia and the remaining material locally. The television industry in Mexico is
initially started by Koreans in the middle of 1980s.

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 The industry benefits hugely from the San Diego research and
development centre and also from the free trade association NAFTA of North America.
Large number of local suppliers has been set up.

Almost 90 percent of the production is exported to North and South

America. The industries established have created a job opportunities for around 30,000
people.

It could afford 276 television sets for every 1000 people indicating that the
market is huge.

India: With the growing economy and demand in the local markets, the manufacturers
have started newer plants to cope with the demand.

For example, one of the leading television manufacturers Samsung India

was started in 1995 and began its production in 1997. With rapid production rate, it has
produced over 2 million television sets by the middle of 2002. It also experienced a
single day record production of 5000 units.

Therefore, it can be summarized that the television supply chain has

benefited from the globalization process because of:

 Standardization and customization – countries can modify the manufacture plan

and design according to the local demand.
 Economies of scale – larger production volumes and cheaper materials
 Low cost labor – availability of cheap labor in least developed and developing
countries there by making the industries to establish and be close to the
consumer and in turn decrease the transportation cost and the overall product
price.

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  New growth market – globalization made the television set affordable for more
than 2.5 billion people in least developed economies by making the price drop of
the unit.
 Consumers are the winners – the price of the product has decreased to more
than half in a very short period of six years with better technology and
performance.

The television manufacturing supply chain is just one example of the

benefits of globalization. Today, there are lots of such electronic products where the
components that make a product are from different places and are finished at different
places and then serve the needs of the consumers all over the world.

4.1.2. Globalization of food and plants:

The daily food and the snacks we eat today are only possible because of
the globalization. It is hard for us to imagine how our life would be without the
globalization of certain products that we consume on a daily basis.

Let us have o look on globalization of some products that we take daily.

Spices: Spices were of much value in the medieval period and the reason for this was
not that they are good to preserve meat, but for the variety of taste of flavors and for its
medical properties. The increase in demand for the spices was also the reason for
colonialism and look for new places to cultivate spices. This made it the first globally
traded product well before the voyages carried by the European travelers.

Most of the products that started trading globally after the spices, have
followed the global path created by it. Though the demand for spices or its trade today
is not as it was in the medieval age, it has initiated the trading of products globally which
others have followed.

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The Potato: One of the most regular foods of today, potato was once cultivated only in
some places of Asia. Today, potato is found in almost every restaurant all over the
world from its normal form to French fries. From its appearance to its common use
today, the journey of potato is linked to the process of globalization.

In the early stages of its appearance in the Andes Mountains, potato was
considered by the Spanish conquistadors to be dangerous for consumption and would
lead to leprosy. Later it found its ground in Europe, which was a good place for it to
grow as it is grown in the ground and doesn’t require facilities of irrigation like that of
rice. Then from Europe, the journey of potato continued to India and China and later on
to the rest of the world.

Today China leads the production of potato with over 60 million tons per
year followed by India with about 25 million tons. These countries serve the potato
needs of many other countries globally.

The increase in the consumption of potato over the years all over the
world was not the only thing that drives its global trading, but it was also because of the
wars that took place in the history. During the wars between countries, one (invaders)
tried to destroy all the crops of their enemy but couldn’t destroy the potato crop as it
grows in the ground. As potato proved to be the only food for survival during wars where
no other crop is available, it helped in increasing the population and industries to
flourish.

Therefore the crop, potato, which once found in some places, is now
available for the consumers all over the world because of the globalization process.

Coffee: The drink that we take today in different forms as mocha java, cappuccino, or
half-decaf, moka, latte, coffee was not of much priority all the time. At times in the
history, it was considered or consumed as a secret or as a banned product. But this has
not stopped it to trade all over the world from its initial existence in Ethiopia.

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 The coffee was first found in Ethiopia and then to Yemen and was grown
there for over hundreds of years before making its way to Turkey in 1453 and it was
here the coffee beans are made into a drink mixing with water similar to as what we
consume it today.

The coffee was later brought to Europe in 1600 by the Italian traders
where it was blessed by the Pope as it was found to restrain the people consuming lots
of alcohol. And then in the eighteenth century, the Dutch introduced coffee to India and
Indonesia. The increased demand for the crop made it scarce until the Louis XIV was
given a bush of coffee by the Dutch. The European climate helped in growing the coffee
avoiding its inexistence. The production of coffee was then increased by the Gabriel
Mathieu de Clieu, a French naval officer who brought a single coffee plant to Martinique
Island which cultivated over 19 million coffee trees all over the island in 50 years.

Hidden in a flower bouquet, coffee has made its journey to Brazil in 1727
which soon spread to Latin America and in 1823 to Hawaii. After travelling round the
globe, coffee has finally made it to Tanzania and Kenya in Africa and this way coffee
has made its presence all over the world by the process of globalization.

The Tomato: The tomato was first found in Peru and today it is very hard for us to
imagine lot of recipes without tomato. The tomato then made its way to Mexico and
became the staple for lots of dishes in Mexico even today. From Mexico in 1520’s, the
tomato made its journey to Spain by a conquistador of Spain. And from Spain it
travelled to France and Italy.

The tomatoes though were eaten in the Southern Europe, it was perceived
to be poisonous to eat as it was from the family of mandrake. But as time progressed it
was known that the tomatoes are not poisonous and are suitable for eating. In the
mean time, the tomatoes made its way into America sailing with colonists.

Today, tomato has become so famous that almost all the cuisines have
made it a part of the recipes. The Italians find it hard to imagine the pasta without

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pomidoro sauce (tomato) which actually made its (tomatoes) way to Italy because of the
Spanish conquistadors. Similarly, the Indians could not imagine the ‘rogan josh’ without
tomatoes which were once found only in Peru. Also it is difficult to imagine pizza, burger
and French fries without the ketchup made of tomatoes.

Tea: The story related to the globalization process of tea is similar to that of the coffee
starting from China to rest of the world. The tea was actually found by a mistake in
China. Five thousand years ago, the ruler of China was curious in trying new things and
when he saw a bunch of leaves in his vessel of boiling water, he drank the water out of
curiosity to know how it tastes and he liked the tasted. From then, the drink became a
tradition in China.

Later, the Buddhist monks of the Japan’s Buddhist missionaries took the
drink with them from China to Japan as a drink that helps in meditation. And in the same
way, the drink was also introduced in India.

The later years have seen increase in trade between the Europe and
China and Japan, and with this trade relation they came across this mystical drink but
couldn’t find the way how it is prepared until the start of firm trade of this product by the
Portugal with China in 1560’s. This way, the mystical drink of China made its way to
Europe through Portugal and was soon followed by Netherlands. The debate that took
place in the 1600’s regarding the attractiveness of the drink surprised the doctors who
found that the health of the Europeans has increased since drinking tea. Though tea
made its way to Europe in 1560’s, it was not until 1652 the drink made its presence in
Britain. But soon, the Britain began to import the product in large quantities.

The trade of this product became the new language of communication in

the trading between India, China, Japan and Europe. America also added its support for
the growth of tea trade by introducing ‘iced tea’ and tea bags which are available now all
over the world.

22
The chili: Known with different names in different cultures as Chilly, chile, chili pepper,
hot pepper, lup chew, mirchi, felfel, bisabas and chilipippurik, the chili fruit which was
initially from South America has become a global food which gives a taste of delight to
all the recipes.

According to the estimation made by the archeologists, the chili cultivation

was started around 5000 BC, and is regarded as the most aged crop farmed by man.
Christopher Columbus has introduced the chili pepper to Spain as a spice though it is
not a spice and is just like tomatoes, potatoes and tobacco. And soon the chili pepper
was introduced to the world.

Just like the trade of tea initiated by the Portuguese, the chili was also
traded all over the globe by Portuguese in the first place. The chili pepper was
introduced to India in 1498 by the Portuguese and on their way to India to trade the chili
pepper used to stop at various ports of Africa, which lead to the introduction of the fruit
(chili pepper) in Africa.

Though the chili pepper was been cultivated and exported from Mexico for
about a hundred years, it was not introduced in North America until the full flow of slave
trade. Due to the increase in number of slaves from Africa to America, the North
America has started to grow the chili pepper in 1700’s in order to satisfy the eating
habits of the Africans. While India, Africa and Asia have rapidly captivated the chili
pepper, Europe was averse to its use as a special product and perceived it to be just
normal as any other spices. The Chili pepper made its way from Spain to Antwerp, Italy
in 1526 and then in 1548 to England.

Though most of the Europeans were trading high in chili pepper, it has not
arrived at Eastern Europe until the Muslim merchants from India introduced it to the
north in Eastern Europe through their trade all the way from India to Gulf, Alexandria
and then to Eastern Europe.

Without the globalization of the chili pepper, it is very difficult to make the
product reach every part of the globe and today, it cannot be imagined any dish without

23
the use of chili pepper in some form that gives a taste of delight to the food and a mood
to its consumer.

Tobacco: Though there are many stories about when and how tobacco made its
appearance, it is told that Columbus had the initial sight of smoking tobacco. He
discovered the existence of the product on his journey to Europe. Amerindians started
farming tobacco in both North and South American continents. The European countries
have cuddled the tobacco than other products like tea and coffee.

Nicolas Monardes, the Spanish physician has mentioned about tobacco in

his book as a plant with medical properties and even claimed that it can cure many
illnesses including that of cancer.

From its appearance in Europe and its cultivation in America, tobacco has
made it to the rest of the world at a rapid pace unlike that of the other products that took
quite a significant time to make their presence all over the world.

4.1.3. Ideas travel the globe: The factor that enabled the human community to stay
connected in spite of spreading to all over the world is imagination. The ideas related to
any new innovations or discoveries have never been confined to the place where they
are from no matter which part of the world it is. Just like the channels that flow through
diverse places of the globe, the ideas also travel all over the globe.

The best example to show that ideas travel all over the globe is the story
of ‘Zero’ as explained below:

The story of zero: Though the symbol of zero means nothing or of no value, it has
crossed many borders and been through many minds from the time of its foundation.
And is difficult to answers most of the questions without referring to zero.

The system of counting was initially begun by the Sumerian to maintain a

record of their reserve. The system used is positional i.e. a value is designated by the

24
position of one symbol with the other. In 2500 BC, this system was passed on to the
Akkadians by the Sumerians and later in 2000 BC to the Babylonians, who pictured
initially that a symbol is missing in the Sumerians number system but couldn’t find a
solution or a symbol that is missing.

The zero was initially recognized as a symbol and as an idea by the

Indians. The arithmetic operations making use of the zero were initially performed by
Brahmagupta, who used dots beneath the numbers to specify zero. These dots were
otherwise perceived as ‘Sunya’ meaning empty or ‘Kha’ meaning place. Later,
Brahmagupta set some standards regarding the addition and substraction where one
can arrive at zero and also drew the outcome of operations involving the use of zero.

Though the work done by Brahmagupta in using the zero has contributed
much to the calculations we do today, the only mistake that’s been found in his work
was the division by zero and this was continued till it was dealt by Isaac Newton and
G.W Leibniz. But it would still be some hundred years prior to zero making its way to
Europe. Initially, it was the Arabian travelers who started bringing the work of
Brahmagupta and his associates besides other products like spices from India. Based
on the Indian number system, the Arabian mathematicians in the Middle East began to
build up the zero that reached Baghdad in 773 AD through the Arabian voyagers. In the
900’s AD, Mohammed ibn-Musa al-Khowarizmi was the foremost to perform equations
that gave the outcome as zero, or algebra as it is known today. In addition to this, he
has also built some fast methods to perform multiplications and divisions which are
known as algorithms. The symbol of zero ‘an oval shape’ that we use today was in use
by 879 AD, but small in size compared to that of the other numbers. The zero then
reached Europe because of the invasion of Moors on Spain.

Based on the work of Al-Khowarizmi, Fibonacci, a renowned Italian

mathematician developed some algorithms to perform the arithmetic operations using
zero. This was soon observed by the German bankers and found it useful in maintain
their accounts. With this the accountants became aware that their balance sheets are in
balance if the sum of both their assets and liabilities equal zero.

25
 The next great work on zero was done by Rene Descartes, that is, the
foundation of the Cartesian coordinate system in which the origin (0, 0) is known as the
Descartes’ origin after his foundation. By this time, the zero has become much popular
but the complete understanding of zero including the problem of division by zero in
Brahmagupta’s work was made by Isaac Newton and Leibniz, who developed calculus.
They have concluded that the outcome of division by zero is indeterminate.

Today, in the twentieth century, talking in regard of zero looks like talking
about nothing, but the usage of this nothing is the key to the progress of the civilization.
Imagine if a zero is taken of your salary. It’s hardly difficult though it is of no value. Its
value lies in its understanding and making use of it in works.

Though the zero was initially found in one place, it would not have made it
to the present in the shape and usage without being passed to different places and
different minds. Therefore, it is the process of globalization that made it possible for us
to perform the operations like arithmetic, algorithms, calculus and Cartesian coordinate
system.

4.1.4 Globalization as free trade:

Imposing tax on products from other countries does not help in

maintaining good relations. Instead, if it allows to trade freely, it helps the development
of both the countries involved in trading. The decision to make free trade by the
European Union with that of most of the LDC’s (Least Developed Countries) has
enabled to increase the trade of these countries with the European Union thereby
increasing the economic growth of the LDC’s and also the European Union.

The poor or least developed countries, that are open (free to trade) have
progressed (5%) well compared to that of the poor countries that are closed (0%) in the
last fifteen years.

26
4.1.5 Technology:

Today, people are moving to different parts of the world for various
reasons like education, work, business and travel. The technology that is globalized
today helps to stay connected with their people, preserve their cultural identity making
using of the internet, mobile and satellite television.

4.1.6 Democracy:

The demand for social equality and participation has been increasing
largely over the years with the globalization because of the domineering state of the mid
20th century. The number of countries that are moving towards democracy can be
witnessed from the figure below.

Figure: Growth in number of democratic countries

(http://yaleglobal.yale.edu/sites/default/files/flash/about/globalization/PART2-
2/Presentation_Files/index.html)

27
4.1.7 War:

The globalization has decreased the chances of a war on a large scale

like that of the world wars in the recent years. This could be because of:

i. Increase in the international ban in opposition to waging wars in international law

and worldwide public voting.
ii. Increase in the connectedness and dependency of the military between countries.
iii. Political resources became hugely difficult to attain with wars.

4.1.8 Outsourcing:

Globalization helps in outsourcing work or projects to other places where it

can be done with fewer costs. Today, we have many companies outsourcing its
functions to other companies that are geographically far away from it like the United
States Company IBM outsourcing its work to places like Bangalore, Hyderabad and
Chennai in India.

This helps in creating job opportunities in the country to which the work is
outsourced.

Apart from these benefits of the globalizations, the global rivalry supports
creativity and innovation helping in the price reduction of commodities and services. It
also helps in getting exposed to foreign culture through the means of movies, music,
food, clothing and etc.

4.2 Globalization - A bad one:

Besides the good that globalization has given, there are bad thing
happened because of the globalization. Let us have a look at some of the bad things
that rose due to the globalization process.

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4.2.1 First war of globalization or the Opium war:

The increases in demand for the tea in Europe lead to the takeover of the
coastlines in India by the India Company showing the political instability as a reason for
business disruption. Then they have utilized the coastlines to produce opium, which
could be exchanged with the Chinese for the tea leaves without spending the British
coinage for the tea leafs.

The trading of the British opium for the Chinese tea leafs lead to more
than 90 percent of the people aged under 40 get addicted to opium smoking decreasing
the work along the coastlines and thereby degrading the livelihood. This was done by
the British merchants, as they have got frustrated with the rules and regulations of
trading imposed by the Chinese law. By the time Lin Ze-cu, the Chinese ruler’s
representative arrived at Canton in March, 1939, he found the situation to be worst and
in order to bring it into control he has taken quick decisions in opposition to foreign
traders and their Chinese co-conspirators by arresting about 16,00 people and seized
around 11,000 pounds of opium.

Though the British superintendent of trade, Charles Elliot made an effort to

compromise, Lin has further seized about 20,00 crates of opium in June and arrested all
the foreign merchants until they have gave up the 9 million pound worth of opium they
had and then burned it publicly. With this, Lin has shut the port of Canton for all the
foreign traders. This led to the attack of British on China, which was finally ended in
1942 where the British came out as the winner and China being defeated has gave up
the Hong Kong to the British.

4.2.2 Globalization of potato:

Though potato was the only food available to survive the wars as it is
grown in the ground and helped to increase the population in Ireland after its suffer of
the wars throughout the seventeenth century, the same potato has led to the decrease
in population of the Ireland in 1840’s.

29
 On an average, an Irish eats 10 potatoes a day besides feeding to their
livestock. A fungus that came all the way from North America has not only washed up
the Irish potato crop, but also led to the decrease of its population by over 2 million in
six years which had grown by 5% over the last hundred years. Therefore, a scholar
mentioned that “The Irishmen who lived by potato also died by the potato”.

4.2.3 Slave trade:

With the increase in demand for the globally traded products like tea and
coffee, the Portuguese have enslaved the Africans to cultivate the crops so that they
can make use of the global demand of the products. Therefore, it can be said that
besides helping the world to grow and integrate as a single, globalization has also made
the life of humans miserable.

4.2.4 Inequality:

The world in recent times has experienced inequalities in terms of income,

living opportunities and technology, that is to say; the richer is getting richer and the
poor is getting poor on each passing day. For instance consider the UN World
Investment Report, which shows that the FDI (Foreign Direct Investment) has gone up
from 300-400 billion dollars in 1990’s to about 900 billion dollars in 2000’s. This is quite
a huge transfer of capital all over the globe. But of this total amount, 80% is going to
OECD (Organization for Economic Co-operation and Development) countries and half
of the remaining is to the emerging markets like China and India of which China takes
the primary share. From this, one can understand the amount going to rest of the
countries which states that there is inequality in terms of both income and investment.

30
4.2.5 Technology:

With technology growing at rapid pace in the recent, the adverse effects of
it are also growing along with it like that of hacking and cracking the system. This
proves to be insecure to carry on the trade and services with the use of technology.

4.2.6 Outsourcing:

Despite the fact that outsourcing is helping in creating job opportunities in

countries to which the work is outsourced, it is actually creating unemployment in the
outsourcing countries i.e. the jobs are actually being shifted over borders.

4.2.7 Terrorism:

Though terrorism and globalization are different, globalization in a way is

helping terrorism to make its job easy. Though the globalization of technology and the
movement of people to other place is supposed to be for good, this is being used by the
terrorist activists to do evil things and creating lots of troubles to mankind.

4.2.8 Globalization of tobacco:

Despite being regarded as the plant with medical properties that helps in
cure 20,000 diseases including cancer, it was later found that tobacco is very
dangerous to health and is treated as an evil to mankind. But the use of the product was
not able to be controlled as it was addicted by most of the youth early in Europe and
later followed by rest of the world.

31
4.2.9 Runaway globalization without governance:

The process of globalization was in practice since hundreds of years, but

the control of interconnectedness it created between the nations is a new happening.
Though the problems raised because of the governance of globalization in the past are
less, it has increased in the recent times due to the rules and regulations imposed by
countries in trade.

The time of individual traders has passed away and this is the time where
63,000 multinational corporations are in picture of procuring global services and goods
to trade them all over the world. The position of adventurers has been distended by
some billions of tourists and millions of refugees and emigrants seeking new homes.

The most concerned issue is the reach of nuclear weapons and the
danger that they may fell in the hands of terrorist communities who might be waiting for
such an opportunity. Though the stated intention of the Nuclear Non-Proliferation Treaty
was to abolish the nuclear weapons, the present happenings suggest the opposite
extending the current nuclear powers rank from 5 to 9 including Israel, Pakistan, India
and North Korea.

The major issue of globalization is the world’s population that has

increased largely in the last ten years. Because of the huge growth in population, there
was increase in the cultivation area, large scale industrialization and galloping in trade
all of which led to the worsening of the environment.

5. Effects of globalization on company Marketing strategies:

The effect of globalization on companies has evoked both opportunities

and threats that led firms to adapt new organizational structures and marketing
strategies accordingly. Companies that better respond to these trends have shown
improvements in their development and performance. On one hand, the opportunities of
global market has enabled companies to access the resources available worldwide and
can expand its operations into new overseas markets. On the other hand Globalization

32
as a threat, it is destroying the company’s performance and development due to high
competition from the overseas market entered with Globalization.

The new capital markets and World trade liberalization begin with
globalization has created a new challenging competitive trends for all the firms. Several
changes in the Business environment have emerged where there has been
an emergence of global markets for labour, services, goods and financial capital with
the trend towards more interdependence among countries. The advancement in
transportation and communication technologies has increased the liberalization of trade
and investment which resulted in high volumes of transaction between international
businesses. Two key effects of globalization are brought about by these above
mentioned trends one of which is global market opportunities and the other is global
market threats. Globalization presents not only more opportunities to firms but also
higher levels of threats which is obvious. Globalization, competition and uncertainty are
inevitable while opportunities can arise from them. To cope up with these effects of
Globalization, companies have arranged and created different strategies and structures
for achieving better results. These are discussed and analyzed individually below:

5.1 Market Opportunities of firm achieved by Globalization:

The global market opportunities evoked due to globalization is the result of
increase in trade and investment potentials, market potential and the accessibility to
wide resources available around the world. The firms seeking for international market
exposure are provided with tremendous opportunities due to developments in IT
(information technology), privatization, and removal of barriers for trading and
investments with deregulation of policies on trade and investments.
The Business environment faced with such changes not only enable firms to access
new markets but also reduce the costs by exploiting cheap resources available around
the world and by relocating their operations. Also there is an important and common
trend going in many companies is outsourcing. Companies earn more profits and
reduce their costs and responsibilities by outsourcing their projects to other parts of the
world. Due to globalization of technology market transactions have also become more

33
and more efficient. Eventually, these new market opportunities have brought rapid
growth in various economic segments in several regions across the world. During the
1990s and early 2000s a large volume of cross-border flows of trade, technology and
investment has shown an evidence of increasing opportunities enabled by globalization.

Globalization has increased the resource accessibility of firms, tradel and

market potential, as discussed earlier. The reduction of barriers in trading and
investments in the present marketplace has made it easier for companies to outsource
their production in different parts of the world that has benefited them in reducing their
operational and labour costs. Both Financial and human capital's Liberal movements
has facilitated many business with international transactions and got access to many
new untapped markets around the world. In addition, the advancement in
communication and information technologies has improved the efficiency of the firms
and lowered their search costs. Therefore, it is evident that globalization makes the
availability necessary resources for firm's growth and success even more abundant.

5.2 Global market threats on company marketing strategy:

The categorization of global market threats can be done into two parts
namely, global competitive threats and global market uncertainty. As a result of large
number of competitors in the world’s marketplace the competition is strengthened in
global markets, is what is defined as global competitive threats. Due to these higher
rates of competitions in global markets another threat called global market uncertainty
has raised which refers to demand uncertainty and increasing complexity in the world’s
markets. In the following sections these two types of global market threats and  
their hypothesized relationships are discussed in detail.

5.2.1 Global Competitive threats:

Globalization has increased the quantity and intensity of competition faced
by firms although it has enhanced the market opportunities globally. Globalization made
easy for firms around the world to enter diverse geographic markets, and therefore

34
increased the competitive atmosphere for firms around the world with its
technological developments, trade liberalization and convergence of governmental
macroeconomic policies. The competitive terrain faced by firms from both emerging and
developed economies was considerably changed by Globalization. The different levels
of operation of firms such as global, international, regional and domestic are now
competing against one another. Therefore, it is clear that a new competitive landscape
known as "hypercompetitive markets" was brought into a form by globalization. The
hypercompetitive markets is the one, that increases threats to firms in every
economic sector as it develops the firm’s relative competitive advantages very quickly in
a short period of time. Moreover, globalization also facilitates consumers to gather
information in an easy and faster way even with reduced costs. Thus, it enabled them to
search other alternatives and they set ready to switch to those alternatives accordingly.
The growth in the competition has also resulted in the scarcity of resources. Such kind
of hypercompetitive situations is been a harmful to the firms along with the scarce of the
resources. Due to this intensified competition and buyers tendency towards lower prices
firms are forced to compromise with their pricing strategies, which led them to make
lower returns with their lower prices. Therefore it is clear that there is a bad relationship
between the global competitive threat and the market performance of the firm.

5.2.2 Global Market Uncertainty:

Global market uncertainty is another threat that refers to the demand

uncertainty and increasing complexity in the global markets. The increase of difficulties
in planning and making decisions are faced by Firms due to demand uncertainty and
complexity of problems combined from different parts of the world. For several causes
demand has become hard to forecast. Forecasting of demand and competitors
responses has become more and more difficult because of the continuous increase in
number of firms that participate in the global marketplace. In addition, the change in
advancement of technology has enabled consumers with greater choice of products
from different parts of the world. The shifting of consumers to different producers
available at different parts of the world has affected them in predicting the demand and

35
making complex in building their business strategies. Firm's market strategy is affected
largely since the operations in the global marketplace have encountered an increase in
the level of uncertainty in predicting the demand. Moreover, it is clear that the
relationship between the firm marketing strategy and perceived uncertainty is in the
negative side. Therefore, global market uncertainty is theorized to affect negatively on
firm’s global market.

5.3 Cooperative arrangements among companies:

Since the beginning of Globalization, there is an undeniable affects on

businesses that has witnessed a significant changes in the environment and structures
of business, which caused to change and transformations in the conduction and
marketing activities of the businesses worldwide. In order to achieve superior
performance in the marketing activities in this globalization era, companies have turned
to manage new strategies in making relationships with partners, different parties in their
business chain and with customers. As a result of this companies begin to make new
trends towards more cooperation among themselves. Based on two significant
perspectives, the market power perspective and cost transaction economics
perspective, it is seen that cooperative arrangements such as formation of strategic
alliances which offers an excellent options for the businesses to come out from the
effects of globalization and to achieve good business operations globally. The reduction
of completion and expansion of the company’s strategic abilities are the two main
reasons that motivate the creation of cooperative arrangements like strategic alliances
in the present world of business.

5.4 Marketing challenges and solutions to the global company:

The global companies are primarily established with a high-tech business

resources created by the experts in the technological fields. The global companies need

36
exceptionally high financial resources for its marketing purpose, twice as much as it
uses in product development. Due to its global operations it takes lot of time to plan for
its sales and marketing through a global brand is created. So, in order to save time and
to attain faster results, hiring of core marketing people is essential with early planning
for marketing and giving special attention to resources and marketing activities to
develop the brand image in the minds of the customers. A lot of time and effort is
needed to initiate effective marketing, to build up the brand image in the public, to
employ the core marketing executives and to cover the revenues. The use of advanced
marketing strategies like developed technologies for promoting and sales, value based
price listing and formation of partnerships and strategic alliances for marketing, that
helps the company to flow in the current market more rapidly. Sales and marketing of
the global company starts with the transfer of management and product development in
the direction of marketing. It is important to consider the global marketing requirements
before designing the product and to make sure the resources are found for the company
needs.

For any global company it is important to prepare and maintain the country
kits or easy software that identifies the variations and demands of specific country. For
example a high-tech company that developed software technology which enables
the business to recommend modified products through the loading of applications on
the product that also attains benefits from mass production at the same time. Global
marketing activities should always include some key factors like maintaining large
channel members and frequent contacts with its customers by supporting and serving
their needs. To attain the credibility of global customers it is also important to promote
the brand and the products with brand identity manuals, brochures and other effective
marketing materials

37
6. Recommendations and conclusion:

Globalization can either be good or bad, but provided that it is managed

properly, the bad things that cause can be minimized. And to do so, we need to take
some measures like:

i. Developing economies and the economies in changeover have to progress with

more liberalization and deregulation of their economies to make sure that
efficiency is guaranteed while ensuring the statute of law along with prudential
management and regulation to make sure of their economies.

ii. Take up and implement of suitable policies at international, national, regional

and sub-regional levels making sure that cooperation in the regional and
international levels are maintained in the areas like trade, information
technology, communications, investment, transport and environment.

iii. The economies in transition need to put information and communications

technologies (ICT) in practice, as it would help the transition progress to take
place at faster pace with its capability to jump certain development phases.

iv. Broadband service is a fast budding field that demands an immediate call for the
support of universal right to use broadband technologies, as it gives scope for
public services like e-learning, e-health, e-governance and other multimedia
applications and also plays an important role in governing the process of
globalization. For this reason, projects to develop the broadband infrastructure
in particular countries must be taken briskly.

v. Appropriate national legislation in opposition to cyber crime and the coordination

of cyber regulations at the local levels is needed to make sure that use of
information and communications technologies for trade and services is safe and
secured.

38
vi. The ICT should be effectively used by incorporating it with the business
processes to form a branch of the national trade facilitation plans.

vii. To manage trade globalization, an open, impartial, evenhanded, rules-based,

knowable mutual trading system is the most useful and efficient means for
growing trade for development, provided it has incorporated suppleness for the
unique concerns of developing economies, landlocked economies, and
countries with economies in transition. Unlike the NAFTA (North American Free
Trade Association) which allows free trade for only the members of its
association and not the rest of the world.

viii. Need to implement market-leaned changes to produce an enabling business

atmosphere. Necessary measures should be put into practice to attract FDI in
the medium run such as
 Macroeconomic stability measures
 Foreign exchange convertibility
 Private sector development
 Development of banking sector
 Measures to prevent corruption
 Standard regulations

ix. To effectively implement the marketing strategies in the present world of

globalization, companies need to be capable of confronting traditional thinking
and keep on learning the cultures to so that they can reform their competitive
strategies.

x. Companies must build up new marketing solutions so that they can have a
competitive edge over its rivals in the market besides providing excellent
services to its shareholders and customers.

39
7. References:

1. Jeffrey G. Williamson et al, 1999, “Globalization and history: The evolution of

a nineteenth century Atlantic economy”.
2. William R. Thompson et al, 2006, “Globalization and global history”.
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challenges of global capitalism”.
4. Luke Martell, 2010, “The Sociology of Globalization”.
5. Malcolm Waters, 1995, 2001, “Globalization”.
6. Global dimensions, 2001, “Globalization: Good or Bad?”.
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18. Nolan, Peter and Jin Zhang, 2003, “Globalization Challenge for Large Firms
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24. 28th October 2010,
http://usforeignpolicy.about.com/od/trade/a/gzgoodorbad.htm
25. 28th October 2010, http://hubpages.com/hub/Globalization-Good-or-Bad
26. 1st November 2010,
http://geography.about.com/od/globalproblemsandissues/a/globalization.htm
27. 5th November 2010, http://www.scribd.com/doc/2557562/History-of-
Globalization
28. 15th November 2010, http://yaleglobal.yale.edu/about/history.jsp

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8. Bibliography:

1. 30th October 2010, http://www.helium.com/items/469253-is-globalization-

good-or-bad
2. 30th October 2010, http://business.mapsofindia.com/globalization/history.html
3. 15th November 2010,

http://yaleglobal.yale.edu/sites/default/files/flash/about/globalization/PART2-
2/Presentation_Files/index.html

4. 20th November 2010,

http://ivythesis.typepad.com/term_paper_topics/2009/10/effects-of-
globalisation-to-international-marketing-strategies.html

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