UNIT 407 INTERNATIONAL BUSINESS STRATEGY Homework
Question 1 The Impact of Globalization
Globalization has had an increasingly significant impact on international marketing. More and more markets become open to international organizations as the cost and complexity of operating overseas is reduced by globalization. One of the key drivers of increased international marketing has been reduced costs as a result of globalization. Organizations are able to access cheap resources and labor in developing countries. This not only allows them to price their products lower, but also opens up a broader market of people with the disposable income to buy more goods and services. New and ever improving communications technology has spread throughout the world, allowing international marketing campaigns to be coordinated all from a domestic base. The internet and mobile phones have opened up entirely new international industries with endless potential. Globalization has changed the way people shop. Consumers are better able to shop around for good deals and are prepared to buy from overseas without necessarily viewing products first hand. Globalization has also increased market competition, in turn increasing the importance of effective international marketing. Many organizations cannot rely on the fact that they are the only player in a long held domestic market, there are new competitors from overseas appearing all the time. Transport and distribution systems are more efficient than ever before, making it easier, faster and cheaper for businesses to get their products to consumers. Electronic transfers have also made making and receiving international payments faster and more secure. Finance is more readily available to both consumers and organizations, thanks to the globalization of many financial providers. Investors are interested in spreading their investments over a wider range of markets to reduce their overall level of risk. An increased availability of capital makes...
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