Globalization

International Marketing

Instructor: Dr. IRFAN BUTT

What is 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?

Economic Political Social & Cultural Environmental

Scope of Globalization?

Major increases in worldwide trade &

Exchanges in an increasingly open, integrated, and borderless international economy.

Economic Globalization

1. Trade

2. FDI

3. Mergers & Acquisition

4. Transfer of money

Barometers of 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

Globalization Index

Thank You

Instructor: Dr. IRFAN BUTT