Sep 27, 2012 Get an answer for 'What are the drivers of globalization?' And find homework help for other Globalization questions at eNotes. With the major advances in technology. Aug 08, 2016 Three Key Drivers For Globalization. First driver is the commoditization of the Information and Communication Technology (ICT) infrastructure, computers, software, and Internet. According to Friedman, “These technologies are able to weave the world together even tighter.” This deep global integration sets the stage for the second driver.
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Globalization refers to the breakdown in barriers that prevent the exchange and integration of finances, trade and ideas across the world. While debate remains about the precise features or importance of any given cause of globalization, some general agreement exists about the causes themselves. As an integral, but ultimately subordinate, feature of business, the causes of globalization in marketing reflect the causes of globalization in business.
Technological Advancement
Technological advancement at almost every level, from widespread Internet access to standardization of transport containers and rapid global transportation, serves as a key driver of globalization. Standardization of manufacturing processes allows businesses to harness the economies of scale that make it feasible to serve a global-sized market, and reliable, worldwide transportation provides the necessary element to build a supply chain to serve that market. The 24/7 nature of the Internet gives consumers easy access to products from across the world and, in turn, drives a need for globalization in marketing.
Global Communication
Global communication, aided in large part by online communication channels, such as social media, aid in the transmission not only of ideas, but of social norms and wants. In essence, global communication leads to more homogenized tastes in everything from tablet computers to music. This trend toward global-level interest in products, regardless of origin point, calls for marketing that deals with brands from a global perspective, rather than a local or even national level. Marketers must craft imagery and messages that transcend cultural particulars and reflect universally appealing core ideas.
Capital Mobility
Capital now moves across national borders with comparative ease, which makes it easier for companies to secure financing from a variety of sources. This ability to secure funding from abroad, should domestic sources prove unwilling, can facilitate domestic growth and foreign expansion. In order to secure foreign funding, a business’s marketing team must prove capable of demonstrating that, for example, a foreign market exists for the business’s products, and that it knows how to address both domestic and foreign markets to capture share in both.
Considerations
Globalization presents a conundrum for small business owners. On the one hand, small businesses often find themselves competing with and marketing in competition with better funded global brands. On the other hand, these same businesses have access to a worldwide consumer base that can prove a substantial source of income. Choosing between offering service to a worldwide consumer base or focusing on capturing local and regional business means weighing a number of factors, including logistics, expense, and the difficulty inherent in developing global-friendly marketing materials. Although some businesses lend themselves to serving the global market, selling information products for example, many small businesses opt out of globalization.
References (5)Choose Citation Style
Dontigney, Eric. 'The Causes of Globalization in Marketing.' Small Business - Chron.com, http://smallbusiness.chron.com/causes-globalization-marketing-70664.html. Accessed 02 September 2019.
Dontigney, Eric. (n.d.). The Causes of Globalization in Marketing. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/causes-globalization-marketing-70664.html
Dontigney, Eric. 'The Causes of Globalization in Marketing' accessed September 02, 2019. http://smallbusiness.chron.com/causes-globalization-marketing-70664.html
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Updated September 26, 2017
Updated September 26, 2017
Although question exists as to whether or not globalization has been beneficial for humanity as a whole, there is little arguing that people and nations around the world today are more connected than ever before. One of the causes of this has been market drivers, whereby multinational corporations and brands are engaging consumers from around the planet, further solidifying one global market.
Globalization
According to the Levin Institute, the term globalization refers to the increasing connections people, companies and states are forming around the world. The process of forming social and economic ties across vast distances is nothing new historically; however, technological improvements and liberal trade agreements have increased these connections greatly in contemporary times.
Market Drivers
One of the primary drivers of globalization has been in respect to market forces, whereby many consumer goods and services are now universally available, no matter one’s geographic location or social setting. As a result of international marketing campaigns and corporate brand promotions, consumer desires and lifestyles around the world are increasingly converging.
Other DriversDrivers Of Globalization Technology Logo 2017Drivers Of Globalization Technology Logo Design
Aside from market drivers, globalization can be attributed to other causes, including cost drivers, such as innovations in information technology and transportation; government drivers, whereby many governments have reduced trade tariffs and have embraced free trade agreements; and competitive drivers, which have seen corporations and businesses increasingly compete for market share around the world.
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