New face of globalization
The developing countries, on the other hand, have growing population bases, and although most import a limited number of goods and services from other countries, longer-term growth potential exists in these nations. Often, marketers in developing nations must be educators, using marketing techniques to education populations about unfamiliar, new products and services and the benefits they provide.
Figure 1: GDP growth rate by country: Shading indicates real rate of economic growth in Those in favor of globalization theorize that a wider array of products, services, technologies, medicines, and knowledge will become available, and that these developments will have the potential to reach significantly larger customer bases. These benefits of globalization are viewed as utilitarian, providing the best possible benefits for the largest number of people.
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- To save globalization, its benefits need to be more broadly shared.
Technological developments have made doing business internationally much more convenient than in the past. MNCs seek to benefit from globalism by selling goods in multiple countries, as well as sourcing production in areas that can produce goods more profitably. In other words, organizations choose to operate internationally either because they can achieve higher levels of revenue or because they can achieve a lower cost structure within their operations. Or they may look for economies of scope, through horizontal expansion into new geographic markets.
There is particularly strong opportunity for business growth in markets where strong economic growth is also projected. In these areas, incomes are rising.
In many cases, local populations can now afford goods and services that were previously out-of-reach, including many good produced in industrialized countries. Global companies stand to capture stronger growth and profitability if they can make headway into these markets. At the same time, international operations contain innate risk in developing new opportunities in foreign countries. Potholes in Poland: Poor road infrastructure can be difficult for businesses that rely on road transportation. For organizations operating in developing and less-developed countries, additional challenges can arise, particularly in the following areas:.
How can we make globalization work for Africa? | World Economic Forum
All of these factors—both benefits and challenges—should go into decisions about whether and how to expand globally. Organizational leaders must consider carefully how to balance costs and risks against the potential for gain and growth. Answer the question s below to see how well you understand the topics covered in this outcome. Use this quiz to check your understanding and decide whether to 1 study the previous section further or 2 move on to the next section.
Skip to main content. Module Marketing Globally. But they also have been important factors behind the rise in inequalities we have witnessed—with technological change playing a stronger role.
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The distributional consequences of these forces, however, are not pre-ordained. Outcomes that are more inclusive are certainly possible. Much depends on policies. Sadly, policies for the most part have not risen to the new challenges. Indeed, they have often exacerbated rather than ameliorated the outcomes. Attempting to inhibit globalization or technological change would be the wrong response to the rising popular discontent with their distributional outcomes.
What does it take to succeed in this new era?
Instead, policies must do better to ensure that the economic gains are more widely shared. This means improving the enabling environment for firms and workers—to broaden access to opportunities that come with globalization and technological change and to enhance capabilities to adjust to the new challenges.
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Competition must be strengthened in industry and finance to check the growth of monopolistic structures and abuse of market power. Competition policies must be revamped for the digital age marked by the rise of winner-take-all technology giants. Access to quality education and training must be greatly improved, including putting in place stronger and smarter programs for worker upskilling and reskilling and lifelong learning to respond to the shifting demand for skills. New models of public-private partnerships and technology-enabled solutions must be explored. Labor market policies and social protection systems must be adapted to the realities of a dynamic job market with more frequent shifts between jobs and more diverse work arrangements.
Governments must reorient expenditure priorities and find the fiscal space to restore public investment programs in infrastructure and research and development that have been allowed to run down. They must also review tax and transfer systems that have seen erosion of their redistributive role.
Reforms are needed at the international level as well, so that rules of engagement between countries in trade and other areas are fair. But the dominant part of the agenda to make globalization work better and for all rests with policies at the national level.
Rather than decry globalization, politicians should exert more to put national policy houses in order. The political debate needs to shift from frenzied rhetoric to take up the cudgels against primal forces to a calmer and more serious focus on policies that matter.
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