GLOBAL MARKETING

Global Marketing



Global Marketing

Global marketing is defined as the sale of a good or service to every corner of the globe. Being involved in the global market is very important if you want to your company to succeed and grow. More than ninety percent of all companies believe it's important to send their employees on assignments in other countries. This helps employees get a better understanding of what exactly is going on outside of the United States, which later leads into employee motivation and growth. Trading with other countries is the main focus of the global market. The global market includes such things like food, raw materials, clothing, and technology. Also the global market brings a new way of growing such as the entertainment market which includes movies or sporting events. When it comes to shaping the global market there are many strategies that are used to increase the growth of a particular market. Along with strategies there are also forces that affect the market and how it performs. The world trade organization is important in that it focuses on mediating trade disputes among nations. Another important factor that affects the global market is the relationship between the United States and the European Union. (Young 2007: 35-78)

Trading with other nations is important for many reasons. Firstly, no nation can produce all of the products their people want or need. Secondly, some nations have an abundance of nation resources while others have sophisticated technology. Free trade is a pact between two countries or area in which they both agree to lift most or all tariffs, quotas, special fees and taxes, and other barriers to trade between the entities. The purpose of free trade is to allow faster and more business between the two countries or areas, which should benefit both. There are many advantages for free trading such as the global market contains over 6 billion potential customers for goods and services. This helps companies become more competitive which leads to the innovation of new products. Another benefit of free trade is uninterrupted flow of capital which gives countries access to foreign investments, which helps keeps interest rates low. Global competition and less-costly imports also keep prices down, which helps with inflation. (Theodore 2007: 92-102)

While there are many advantages to free trade there are also some disadvantages. Domestic companies can lose their comparative advantage when competitors build advanced production operation in low-wage countries. Also, moving operations overseas because of competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs. Domestic workers could also lose their jobs due to increased imports. Free trade as is a highly debated concept therefore, you need to look at both the advantages and disadvantages and decide what would be best for your company.

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing have all had major impacts on the international trade system. Increasing international trade is crucial revenue for any nation that is considered a world ...