Impacts of Globalization on Consumer Product Goods
2.1 Definition and Effects of Globalization
Off late the term Globalization has become the buzzword amongst the Transnational Corporations, Countries, Consumers and Regulatory Organizations and the Workers. It has gradually evolved from the 1970s after the advent of different forms of high speed transportation and communication to the age of information technologies around the millennium, to make a single unified community where all the major sources of various social conflicts have disappeared (Scheuerman, 2010 and World Regional Geography, 2009). There are several ways of defining Globalization. As defined by Dr. Nayef R.F. Al-Rodhan (2006), “Globalization is a process that encompasses the causes, course, and consequences of transnational and transcultural integration of human and non-human activities.” The effects of Globalization are manifold. It influences industrial sector, financial sector, labour markets and consumers of a particular country. On one hand it gives rise to more jobs and industries, however, on the other hand, countries are becoming dependant on the other country for a specific product/raw material. Additionally, because of outsourcing jobs from developed economy are being transferred to the developing economy, which has a negative effect on the developed economy and positive on the developing economy.
2.2 Consumer Packaged Goods and Globalization
Consumer Packaged Goods (CPG) are sold at relatively low price and are non durable goods like grocery items, soft drinks etc. Large CPG manufacturer has an advantage of strong brands, greater geographical coverage and having major retailers. CPG industry is affected by the change in fashion, fads and consumer preferences, which in turn effects the purchasing decision of a consumer....