In this essay, I am going to investigate the globalization and poverty in the world. Meanwhile, its impact on global marketing activities will also be addressed.
It is an interesting topic to study, as you will know the reason behind by the following quotes:
‘Over the past 20 years, the number of people living on less than $1 a day has fallen by 200 million, after rising steadily for 200 years’ (James Wolfenson, president of World Bank, World Bank Report, 2002)1
‘Globalization has dramatically increased inequality between and within nations.’ (Jay Mazur, US Union leader, 2000)2
So, who was telling us the truth?
Our main objective of writing this essay is to understand how globalization, poverty and global marketing strategies affect each other, so as to bring insight to global market development through studying globalization progress and poverty in nowadays.
This essay is comprised of five major parts: First, we will talk about globalization and its impact. Second, the global poverty issue will be investigated. Third, new market opportunities in poor markets will be studied. And finally, I will conclude the essay with my own opinion on future global market development and poverty issue.
History and Definition
The term ‘globalization’ has been used by economists since the 1980s. The earliest written theoretical concepts of globalization were proposed by an American entrepreneur-turned-minister Charles Taze Russell in 1897.3
Later on, this term was further defined by several influential views in recent years.
‘The inexorable integration of markets, nation-states, and technologies to a degree never witnessed before—in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than ever before.’ (T.L. Friedman, author of ‘The World is Flat’)4
‘A social process in which the constraints of geography on social and cultural arrangement recede and in which people become increasingly aware that they are receding.’ (M. Waters)5
As we can see, there is a consensus and general understanding about globalization in everyone’s mind. It is all about overcoming the geographical constrains and communicating around the world to facilitate the interaction and cooperate globally.
General impact by Globalization
‘Starting from the fall of Berlin Wall on 9th Nov 1989, the world was flatten through eliminating regional barriers and rapid information flow’ claimed by T.L. Friedman.6
With less than 20 years, the impact of globalization has been influencing the world greatly in 12 areas, including industrial, financial, economic, political, informational, language, competition, cultural, ecological, social, technical and legal/ethical.7
Large economies have been located mostly in the Trial Region of the world (N. America, W. Europe and Japan, collectively producing, more than 80 percent of the world GDP with 20 percent of the world’s population) in 20th century.8
However, in the next 10 to 20 years, the greatest commercial opportunities are expected to be found increasingly in 10 big emerging markets (BEMs) through globalization: the Chinese Economic Area (CEA), India, Brazil, Argentina etc.9 As a result, the BEMs will be accounted for the overwhelming bulk of internationally trade in United States.
One US reporter, Sara Bongiorni, has tried to live a life without ‘made-in-China’ products in US for one year in 2005-06.10 At the end of experiment, she found that life was harsh and it was very difficult to live without China products. As 14.6% products available in US market were imported from China, the growing power of BEMs was shown obviously in this experiment.
In 2001, the World Bank defined ‘Extreme Poverty’ as living on less than US$...