Marketing In A Time of Globalization – Marketing Essay
In my limited 31 years on this planet, I have seen much development and evolution of the English language. From slang words like “metro-sexual” to words like gigabyte that describe new technologies and services never seen
before in history, there have been millions of new words introduced into society. Globalization is another such word that has evolved due to an interesting phenomenon sparked by factors such as the internet, ease of traveling and television. In this paper I will discuss globalization and a hopefully answer a few questions sparked by this new “buzz word” of the 21st century.
The WikiPedia describes globalization as the worldwide phenomenon of technological, economic, and cultural change, as brought about by expanding facilities for intercommunication and interdependency between traditionally isolate cultures. Dramatically increased international trade and finance have established a medium wherein deeper cultural exchanges have taken place —greatly increasing the impact of
global issues at the local scale. (Wikipedia) In short, globalization is the bringing together or the swapping of cultural ingredients among peoples of different cultures and countries. I found this picture on the internet and it drove the globalization point home.
If this picture does not support the clashing of cultures I do not know what does. There are many trade theories that support the idea of globalization. The Heckscher-Ohlin theorem states that a country which is capital-abundant will export the capital-intensive good. Likewise, the country which is labor-abundant will export the labor-intensive good. Each country exports that good which it produces relatively better than the other country. In this model a country’s advantage in production arises solely from its relative factor abundance. (internationalecon) The Heckscher-Ohlin theory basically says that countries will trade with those countries that have things that they need. This is the basis for international trade; quid pro quo. This “this for that” attitude among nations has really supported the fusion of culture.
Prebisch-Singer Thesis also supports the idea of globalization. This thesis states that the price of products traded with other countries fall dramatically over time; therefore an increase in trading is needed to keep profits up. (bss.sfsu.edu) This means more business partnerships and more countries are reliant upon each other. This dependency and relationship between countries have really played a key role in the rapid globalization of the modern day world. Money might be the root of all evil, but it also can smooth out relations among super powers if both parties are getting what they want out of the deal.
Two major drivers of globalization have been the break down of trade barriers and technology. Technology in particular has changed many aspect of modern life. Services such as the internet which allows for global communication at a seconds notice and the unadulterated exchange of information among individuals in opposite sides of the world have played a key role in the merging of cultures. The degradation of trade barriers have allowed for more business and exchanges to happen between countries. There has even been a lot of talk lately about lifting the trade embargo against Cuba. Money talks, and when it does, people listen. The people of Cuba would greatly benefit not only financially from trade lines with the US, but they would also benefit in social and economical ways as well.
Globalization has affected almost every aspect of American life. It is pretty normal for me to have a piece of cold pizza for breakfast (Italian cuisine), go to lunch down the street at PF Chang’s, (Chinese cuisine) and then finish up a nice dinner that night at Tres Amigos, (Mexican cuisine). Another more important affect of globalization is in the work environment. In this politically correct world we live in, it is imperative that each person in a work environment feels comfortable in their environment. With many cultures coming together around the water cooler each day, it is imperative that employees and employers are knowledgeable about other cultures and peoples.
Marketing is another area of life effected by globalization. In previous marketing classes, we learned that it is imperative to find your target market before marketing your product. What if that target market is of another culture? What if you want to target your product to multiple genres and cultures? Every culture is different and reacts to marketing differently. Wal-Mart, saturated in the US, has been looking over seas for more potential shoppers. Lately they have been targeting China; Wal-Mart has spent millions of dollars in research figuring out how to market to the Chinese people.
Regional trade blocs are intergovernmental associations that manage and promote trade activities for specific regions of the world. (ucatlas). Some well known trading blocs include the EU (European Union; see Map 1), NAFTA (North American Free Trade Agreement; see Map 2), MERCOSUR (Mercado Comun del Cono Sur, also known as Southern Common Markets (SCCM); see Map 3), and ASEAN (Association of Southeast Asian Nations; see Map 4). The following maps show trade data for 2001 (UNCTAD 2002).
Map 1 Map 2
Map 3 Map 4
NAFTA is the trade bloc that affects North America the most. January 1, 2004 marks the tenth anniversary of the North American Free Trade Agreement’s implementation. NAFTA promoters – including many of the world’s largest corporations promised it would create hundreds of thousands of new high-wage U.S. jobs, raise living standards in the U.S., Mexico and Canada, improve environmental conditions and transform Mexico from a poor developing country into a booming new market for U.S. exports. (citizen.org)
The EU has become the most powerful trading bloc in the world with a GDP now exceeding that of the United States. In fact, the EU is currently exporting 813 billion dollars worth of goods and services. The creation of the euro as a single currency for 12 EU members has led to ever closer economic links. The EU has found it difficult to shed its protectionist past based on the idea of self-sufficiency in agriculture which limits agricultural exports from the other countries. (revisioncaptain.com) The importance of the EU is the fact that Europe is a huge economic partner with the United States. If they fail, then our strong economic ties would put a huge strain on our economy as well.
Globalization has been a bi-product of the rapid expansion of peoples of different nations and cultures clashing. Sparked by monetary funds and kept up by the thought of a more prosperous and comfortable lifestyle, countries will continue to merge their cultures as our peoples merge their living, business and vacation geographic locations.