The unending progression of expanding the boundaries of business markets from national to international grounds is the result of the massive development and prospects in the international markets. Bearing in mind the identified and the unidentified potential risks.
Supervising and administering these markets necessitates comparatively complex and strategic planning (Van R. Wood, Kim R. Robertson, 2000).
Research and study in the domain of global marketing indicate that economic integrations have been the major contributors to economic development after the Second World War (Czincota and Ronkainen, 2004). Only some years ago, globalization implied a gradual worldwide launch of a product by a large globally recognized company, in contrast to nowadays when there is tremendous participation by smaller companies (who may not be global players) in launching refined and stylish products at an international level. This fact has resulted in exerting considerable pressure on all companies worldwide to innovate and develop novel products or alternately improve the existing ones, sometimes by even bringing about reductions in their prices by the removal of cost elements, order to be in the race for a substantial share in the international markets (Bradley 1999).
The factors which help in increased global integration are Regional Economic Agreements, Converging Needs and Wants, Improvements in Communication and Transportation Technology, Technology Advances, Pressure to Cut Costs, Global Economic Growth, and Opportunities for Leverage (Keegan and Green,1997).
Regional economic agreements
According to Czincota and Ronkainen (2004), Keegan and Green, (1997), and Wild, Wild, and Han (2003), economical integrations exist in four major forms. Countries or even regions are engaged in numerous integrations which are highlighted below.
Free trade is the least restraining and free form of integration, among nations in which Goods and services can be easily bought and sold among member countries with the help of the Customs union in which the members of the union consent to do away with obstacles in trade and also institute general trade policies with nations who are not members of the union. Thus a Common market is one in which all kinds of goods and services together with labor, funds, and technology are freely exchanged among countries that are members, and limitations on immigration and international investments are removed. The Economic Union is a union of members of countries across borders, in which there is the integration of economic policies among the countries that are members which also entails the harmonization of monetary policies, taxation, and government spending (ibid).
Converging needs and wants implies the unification of market needs, for example, the need for soft drinks and cigarettes in companies. An improvement in communication and transportation technology implies the elimination of distance barriers in the course of development and improvement of both communication and transport which generally takes place by Technology advances which implies that there are no cultural restrictions preventing the improvement and use of technology because as soon as a certain technology is developed it can be utilized and functional worldwide. There is Pressure to cut costs on a company when new products require major investments. Leveraging is an activity, which benefits a company by carrying out business in more than one country, and the four important types of leverage are Experience transfers, Scale economies, Resource utilization, and Global strategy.
Since the previous few years, globalization has mature due to innumerable market factors and forces which have been forcing the progress forward which include not only the market but also the variables related to marketing.
The primary forces which proved instrumental in contributing to the progress of the global economy are the chief syndicates such as the ‘European Union’ (EU) and the ‘World Bank’ or ‘International Bank for Reconstruction and Development, the ‘International Monetary Fund’ (IMF) and the evolution of the ‘World Trade Organization’ from the initial ‘General Agreement on Tariffs and Trade’ (GATT).
Lately, the World Bank has been playing an extremely dynamic function in the renovation and progress of emergent national financial systems. (Smith, 1990)
Prompt infrastructure and technological communications like air transportation and electronic data transmission and technology have minimized the world thereby enabling substantial reductions in expenditure and time and with the penetration of television, the news of the happenings all over the world spreads rapidly causing the aspiration intensity to augment spectacularly. Leagues such as the ‘European Union’ (EU), ‘ASEAN’, the ‘North American Free Trade Agreement’ (NAFTA) with the USA, Canada, and Mexico has been influential in creating global market prospects and challenges and bring not only economic but also social advantages due to which newer countries are constantly endeavoring to connect to these blocs (Terpstra, 1987).
Likewise, the disintegrations of the old communalist blocs have generated fresh prospects for the organization in their struggle to enter the new markets mounting from the ruins.
Bradley F., 1999, International marketing strategy, 3rd edition.
Czincota M.R., and Ronkainen I.A., 2004, International marketing, 7th edition.
Keegan W.J., and Green M.C., 1997, Principles of global marketing.
Smith, P., 1990, International Marketing. University of Hull, MBA Notes.
Terpstra V., 1987 International Marketing, 4th Ed. The Dryden Press.
Van R. Wood, Kim R. Robertson, 2000.
Wild J.J., Wild K.L., and Han C.Y., 2003, International business, 2nd edition.