No one consult Indigenous people and they were forced to give up their land to harvest rubber for king Leopold II
Spanish people got around on horses so this was introduced to North Americans and improved transportation.India were the ones who came up with cotton and manufacturing it, without this we wouldn’t have the cloths we wear right now!
The information technology revolution which has made it very difficult for governments to control cross-border capital movements, even if they have political incentives to do so. Governments can still restrict the multinationalization of production, but they have increasingly chosen to liberalize because of the macroeconomic benefits (EOS) economy of scale.the three major components of international market integration: trade, multinational production, and international finance.
1- Improvement of transportation and logistics (one ton of coffee transport cost only 1% of the price)2- Containerization3- Improved Technology and telecommunication systems4- Growth of MNC 65,000 MNC (1990 was only 7000)5- Reduced tarrif barriers (WTO)6- Firms exploiting gains from economies of scale to gain increased specialization. This is an important feature of new trade theory.
7- Growth of Global Trading blocks which have reduced national barriers. (e.g. European Union, NAFTA, ASEAN)8-Growth of global media.9- Global Trade Cycle countries are increasingly interconnected10- Financial system increasingly global in nature, US affected all major banks in other countries who had bought financial derivatives from US banks and mortgage companies11- Improved mobility of capital (global interconnectedness of global financial markets)12- Increased mobility of labor
MNC knows a lot about a great many countries and congenially adapts to supposed differences (accommodating mode to visible national differences) customized the product to suit every country (Shapes, forms, colors, technology) By contrast the Global C; knows everything about one great thing (about the absolute need to be competitive on a worldwide basis as well as national and seeks constantly to drive down prices by standardized market rather than many customized marketsRecently the trend is Think globally and act locally!
Local domestic markets tried to standardize world practice by exporting domestic products and processes without accommodation or change and have failed miserably!Lower price, Automatized services than manual even if it fail to fulfill all their preferences.Clear example is : German consumers prefer buying low priced Italian machines
Japanese companies operate almost entirely without marketing department or Marketing R & DGE Chairman John F. Welch Jr. contributed that they have done it not by looking with mechanistic thoroughness at the way markets are different but rather by searching for meaning with a deeper wisdom, They have discovered the one great thing all markets have in common: (Desire for dependable, world standard modernity in all things, at aggressively low prices and irresistible values!Now a day the trend is : a combination of product reliability and quality, strong and sustained supported systems, aggressively low prices, and sales compensation packages
So is it Canadian, German, Italy, Russian, Chinese, Japanese, French, British or remain American or will turn to have no more flag with product standardization!
Imperialism: one country domination over another economic, political, cultural systemEconomic shock: such as recessions because we rely on each other so if something went wrong in one country the whole system is been affected ex. Worldwide recession in 2009
The globalization of markets
By Mohammed Abdelrahman Ghorab
Supervision by : Prof. Dr. sc. agr. Erskin Blunck
What is Globalization?
Introduction; The Story of Globalization from History
How has the exchange of goods and services and
technologies affected people?
Why it happen? And its effect
Causes of Globalization
Music Vs. Cinema
MNC and Global Corporates
Failure of Standardization: Truth Has Many Faces
Cracking the code of Western Markets
Is it Good or Bad for us?
You captured the best and the worst of globalized economy:
Opportunities and threats?
“The poor complain, they always do, but that’s just idle
chatter. Our economic/government system brings rewards
to all rich, at least to all who matter.”
“the best definition of globalization”
Canadian development economist
Gerald Karl Helleiner (1936- )
Referred to by Noam Chomsky
King Leopold II
Between 1876 to 1914 the imperial power of Troops of the Eight nations alliance of
1900. Left to right: Britain, United States, Australian colonial, British India, Germany,
France, Austria-Hungary, Russia, Italy, Japan
Different food from different cultures and
places have been exposed to other
that is why we have so much variety of
food choices , it was exchanged in the silk
Swedish Vs. Hollywood?
200 Million $ Vs. 220 M.$
Chasing after many little Ideas quickly
Moving towards one clear big Ideas
Accessibility and open markets
Unlimited number of Ideas and innovation in
a free market ideology.
No borders and breaking barriers
Interconnected world and interdependent
with new Opp.& Chal.
Increased World output
Increased Consumer welfare
Reduce the role and the responsibilities of
Long-run benefits for global economies
Decrease prices to minimal
Interconnected economy with politics and
Growth of NGS like Greenpeace power
Widening the gap between richer and poorer
Domestic products are nearly dead!
Loosing your identity and culture
Monopolization of the market
Spread of economic shock
Poverty & increase transmission of diseases
Lower environmental standards and pollution
and unsustainable env.
Job losses and loss of major local &
domestic production and markets because of
the greater competition
More service sector which cause Dutch
MacWorld western culture becoming a
dominant cultural-political & economical
The international Context, Ch.10, The Globalization of Markets, By
Theodore Levitt, P: 563-567