Market Globalization, Development of World Trade and Global Economic Status - Essay Example

Global Marketing By: Introduction Global marketing has been the of discussion for quite a considerable duration with various stakeholders arguing that it is demanding and rather impulsive. That notwithstanding, it is imperious to acknowledge the statement that the global population has international trade to thank for the positive exploits that come with it. With significant economic background, an interested party may opt for either Brazilian coffee, the bananas from South America or fine bottles of Italian wine thanks to the advancement and expansion registered by world trade. This marketing essay, therefore, aims to provide more insight on some of the key elements of global marketing such as the development of the global trade, as well as the growth of the world economy. Moreover, the essay critically assesses the interrelationship that exists between the aforementioned aspects of the global market. Brief on Market Globalization, Development of World Trade and Global Economic Status According to (Westerfield 2004, pg. 19) global marketing is wider than earlier presumed as it involves the processes of planning, producing, placing and promoting goods and services across international markets. Market globalization has majorly been proliferated by the advancement in information technology as well as the inroads made by the transport industry. In as much as organizations that deal with universal demands such as food and automobiles are some of the most notable institutions that have over time embraced market globalization, the current level of global competition often prompts countless establishments to venture into international markets. This is majorly because organizations that function domestically often face competition from other industry players who have opted to go international. Westerfield further asserts that it is imperative for the administrations of various organizations to be conclusive in carrying market analysis before beginning operations in fresh markets. This is majorly because some of the business approaches that are successful in an economy may not bring forth similar returns in a different market. Apart from making our daily activities more efficient, the advancements in both information technology and transport have opened various global economies to international trade. (Nanda 2011, pg. 108) reaffirms that the establishment of a free and liberal economy is by all standards the first step towards ensuring growth. In as much as the previous generations did not fully embrace it, the practice of international trade has been documented in various histories as demonstrated by the Trans-Atlantic trade that took place between Africa, Europe and the United States in the early centuries. As mentioned in the introduction, one of the major consequences of the progress of world trade is the fact that it brings about diversity into the market, as interested parties are in position to purchase products of their own liking Economic development majorly refers to the aspect of improving the economic status of individuals and the communities within which they reside. Presently, various organizations have been tasked with the process of putting up mechanisms that can ensure global economic development. According to (Poitras 2012, pg. 48) the primary aim of economic growth is to ensure the fiscal well-being of individuals, thereby promoting their living standards. Interrelationships Positive Impacts A few generations ago, doing business across several borders was quite hectic. As a matter of fact, only huge organizations had the aptitude as well as the abilities to carry out trade across various boundaries, an event that literally locked out many companies from opening their doors in different nations. With the inroads made in both IT and transport however, a wide variety of products can be conveyed from one place to another with a lot of ease and within a short duration. This, therefore, implies that the aspect of international trade is advantageous to various global economies. If properly implemented, the plan of an organization venturing into other economies can bring about positive results, as through it the establishment can widen its customer base (Hellin et al. 2003, pg. 259). The fact that international trade and market globalization at large encourages various nations to produce merchandise whose raw materials can easily be accessed ensures that the available resources are utilized to supreme limit. This is because failure to recognize the potential of the assets may lead to the failure of exploitation. Over time, various business stakeholders have reaffirmed the perception that international trade similarly reduces the rate of price fluctuations as global prices highly depend on the consumer base. Moreover, a large consumer base will limit the chances of price fluctuations, whereas a reduced clientele often prompts the manufacturers to vary the price depending on the demand of the market (Gianns 2001, pg. 80). Market globalization and international trade provides an opportunity for manufacturers within a given economy to utilize additional products instead of them being disposed as would have been the case had the universal market not been available. Over and above, stakeholders across various trades of the economy have overtime shared the ideology that market globalization, international trade and economic development is one of the strategies through which peace and goodwill can be fostered between economies that have different interest. In addition, the created mutual understanding can be a mechanism of fostering close cultural relationships between the entities, hence reducing wars and conflicts that often arise when two parties fail to reach a common ground on concerns at hand. Negative Impacts Cutting trade barriers and opening markets, on the other hand, is perceived not to generate the expected level of development. This is majorly due to the fact that various large corporations and rich countries dominate the global markets once the trade barriers are eliminated. An event that leads to the establishment of unequal relations of power and information. Given that the rich nations as well as the already established conglomerates enjoy considerable returns from international trade, the poor countries seldom experience improvement in their standard of living. Instead, they register increased rate of unemployment, incidence of poverty as well as inequality in the levels of income (Arxer et al. 2013, pg. 52). Market globalization has further been made unequal by the fact that most of the subsidiaries that are often involved in the transition process implement strategies that prevent poor economies from gaining access to important markets. In as much as market globalization, international trade and economic development have overtime enabled various countries to import the goods that they cannot easily produce, they have often brought fourth unforeseen circumstances. Situations have existed where various nations have ended up introducing harmful products such as drugs into their countries. An example was the importation of opium in China, an event that brought forth disastrous effects to the nation and its citizenry (Buch 2004, pg. 136). Several stakeholders have similarly attested to the fact that in as much as international trade often prompts various economies to exploit some of their naturally available resources, circumstances have existed where nations have ended up exhausting some of their resources due to the intensive exploitation the resources are subjected to. As highlighted in the section above, market globalization often encourages different economies to focus on manufacturing products that are not expensive to produce. The practice of specialization may, on the other hand, prove disastrous to the economy in case the industry they heavily relied on suffers from instability. Moreover, agricultural experts have overtime reaffirmed the fact that such a trend may often result in starvation in case the given agricultural product fails to bring forth the expected results. As a matter of fact, this practice has been blamed to be the leading cause of food insecurity in most of the third world and developing nations (Annesley 2006, pg. 58). Exploitation of nations and organizations that are not economically stable, by the well-established nations and conglomerates that often serves as subsidiaries while carrying out international trade is one of the major drawbacks of market globalization and international trade. The Great Britain, for example, heavily benefited at the expense of Indians in the course of industrial revolution. It is far-reaching on the other hand to recognize the fact that Great Britain has since then supported India in several projects that in return enabled the country to make considerable economic strides. Conclusion From the section above, it is imperative to recognize the fact that the considerable strides that have been made in market globalization, international trade and global economic development can majorly be attributed to the advancements in information technology and transport. As mentioned in the section above, market globalization is advantageous in the sense that it enables various countries to import some of the products whose cost of production can prove to be expensive (Sandbrook et al 2014, pg. 186) . That notwithstanding, stakeholders have overtime reaffirmed the fact that market globalization can on certain occasions bring about exploitation of those organizations and nations that are not well established. Subsidiaries who often act as transition bodies have been blamed for putting in place mechanisms that harbour poor countries from realizing all the returns of global marketing. In as much as several organizations such as Coca-Cola, McDonalds, Starbucks and KFC have managed to establish themselves with the elimination of market barriers, it is imperative for the entities involved to create equal grounds, for that would foster prosperity for all the parties involved. References Annesley, J. (2006). Fictions of globalization: [consumption, the market and the contemporary American novel]. London [u.a.], Continuum. Arxer, S. L., & Murphy, J. W. (2013). The symbolism of globalization, development, and aging. New York, Springer. Basedow, J., & Kono, T. (2000). Legal aspects of globalization: conflict of laws, Internet, capital markets, and insolvency in a global economy. The Hague, Kluwer Law International. Buch, C. M. (2004). Globalization of financial markets: causes of incomplete integration and consequences for economic policy. Berlin, Springer. Corsi, C., & Akhunov, A. (2000). Innovation and market globalization: The position of SMEs. Amsterdam, IOS Press. 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