Impact of Globalization
Globalization of Markets:
Refers to the merging of historically distinct and separate national markets into one huge global market place. Falling barriers to cross border market have made it easier to sell internationally. It has been argued for some time that the tastes and preferences of consumers in different nations are beginning to converge in some global norm, thereby helping to create a global market, for example Nike shoes are worn all over the world from Canada to Argentina, and from New York to Tokyo most people know about the brand name and demand that stores carry the brand. I recently visited the country of Colombia and found out that mostly everything that’s available in New York is available there also. I was able to find Rolex watches, Apple computers, Mercedes Benz luxury automobiles and so on.
A company does not have to be the size of a multinational in order to participate and benefit from globalization of markets, any small firm can participate in the worldwide trade provided that they get the proper contacts and they do the proper due diligence to make sure they are working with legitimate companies in order to assure themselves to get paid for their goods and services because otherwise it would be very hard to collect on debt from overseas.
The most global markets currently are not markets for consumer products, where national differences and tastes are still important enough to act as a brake on globalization. For example in China people eat scorpions, this is not the kind of food the most people in America would eat on the other hand an American company could import Chinese food to be resold to Chinese businesses in the United States, especially in lower Manhattan where many Chinese immigrants live. The market for Industrial goods serve a universal need the world over, it includes the market for commodities