You have studied the Globalization of Markets. They share these characteristics:
- Convergence in buyer preferences in markets around the world
- Reduces marketing costs by standardizing activities
- Creates market opportunities abroad if home is small or saturated
- Levels uneven income streams for global seasonal products
- Yet companies must not overlook buyers’ needs
- Need for global sustainability—development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
2. The world’s 7 billion people live in three types of markets, yet all require companies to act in a sustainable manner:
a. Developed markets are solidly middle class and people can consume almost any product desired. A firm may use the latest technologies to develop sustainable products in a sustainable manner.
b. Emerging markets are racing to catch up to rich nations and are overloading infrastructures. Resource constraints can force companies to develop sustainable production methods.
c. Traditional markets have mostly rural populations for whom poverty and corruption prevail. Here, sustainability means teaching safe farming practices, environmental stewardship, and disease awareness.
3. Globalization of Production: Dispersal of production activities to locations that help a company to minimize costs or maximize quality
- Access lower-cost workers to cut overall production costs
- Access technical expertise
- Access production inputs unavailable or more costly at home
Conduct Country Research by completing this table:
!. Size and Society
area
population
population growth
2. Living Standards
life expectancy
infant mortality
education spending
health spending
3. The Economy
GDP
economic growth
major imports
major export
inflation rates
unemployment rates
4. Arms, Energy and Tourism
defense spending
tourism receipts
energy use
5. Largest Multinational Corporations and Key Global Competitors in the respective Industries
6. Government
system and main political parties
leaders