Globalizationisanewtermthathasfoundasignificantplaceinthelivesofthepeople.Byglobalization,wemeansheddingdownthewallsofdistrustandthebarriersofsuspicioninbetweencountries,tomakeabridgewhereideasandbeliefscancrosstheborders.Thoughglobalizationtodayprimarilycoverstheeconomicalside,theimpactisnotlimitedtotheeconomyonly.Itactuallyaffectseveryaspectoflife,likecultural,social,psychologicalandofcourse,political.Whileglobalizationisseenasasignofahopefulfuturebysome,thereareotherswhobelievethatitcancausetremendousdisasterfortheworldeconomy.Readontofindtheprosandconsofglobalization.ProsOfGlobalizationWithglobalization,thereisaglobalmarketforcompaniestotradetheirproductsandawiderrangeofoptionsforpeople,tochoosefromamongtheproductsofdifferentnations.Developingcountriesbenefitalotfromglobalization,asthereisasoundflowofmoneyandthus,adecreaseinthecurrencydifference.Tomeettheincreasingdemandsthatfollowglobalization,thereisanincreaseintheproductionsector.Thisgivesloadsofoptionstothemanufacturersaswell.Competitionkeepspricesrelativelylow,andasaresult,inflationislesslikelytooccur.Thefocusisdivertedandsegregatedamongallthenations.Nocountryremainsthesinglepowerhead;insteadtherearecompartmentalizedpowersectors.Thedecisionsathigherlevelsaremeantforthepeopleatlarge.Communicationamongthecountriesisontherise,whichallowsforbetterunderstandingandbroadervision.Ascommunicationincreasesamongsttwocountries,thereisinterchangeofculturesaswell.Wegettoknowmoreabouttheother'sculturalpreferences.Aswefeedtoeachother'sfinancialneeds,theecologicalimbalanceisalsometedout.Governmentsofcountriesshowconcernabouteachother.ConsOfGlobalizationGlobalizationiscausingEuropeanstolosetheirjobsasworkisbeingoutsourcedtotheAsiancountries.ThecostoflaborintheAsiancountriesislowascomparedtoothercountries.Thehighrateofprofitforthecompanies,inAsia,hasresultedinapressureontheemployedEuropeans,whoarealwaysunderthethreatofthebusinessbeingoutsourced.Companiesareasopeningtheircounterpartsinothercountries.Thisresultsintransferringthequalityoftheirproducttoothercountries,therebyincreasingthechancesofdepreciationintermsofquality.Thereareexpertswhobelievethatglobalizationisthecausefortheinvasionofcommunicablediseasesandsocialdegenerationincountries.Thethreatthatthecorporateswouldruletheworldisonhigh,asthereisalotofmoneyinvestedbythem.Itisoftenarguedthatpoorcountriesareexploitedbytherichercountrieswheretheworkforceistakenadvantageofandlowwagesareimplemented.Simplyput,globalizationisanongoingprocessofintegrationofregionaleconomiesintoglobalnetworkofcommunicationandexecution.Letmeexplainthisabit.AssumethatyouareamangofarmerinIndiaandyougrowverygoodqualitymangoesoverthere.Obviously,yourfruitishighlyappreciatedinIndia,butyoualsoknowthatyoushallgetabettervalueinUS.SothenetworkofcommunicationandexecutionthatallowsyoutosellyourfruitinUSisbasically,thephenomenonofglobalization.(AtleasttheIndianfarmerishappyaboutadvantagesofglobalizationinIndia,heisearningaquickbuck.)TheadvantagesanddisadvantagesofglobalizationinIndiaandotherdevelopingcountriesareveryprofound.Readmoreonadvantagesofglobalization.Globalization:AdvantagesandDisadvantagesInsteadofgivingafewpointershereandafewpointersthere,explanationontheseconceptsshoulddomorejusticetothesubject.HavealookatthefollowingAdvantagesandDisadvantagesofGlobalMarketingTherehastobeoperationaldifferencesbetweenvariouscompaniesindifferentcountries.WhatImeantosayis,acarmanufacturerofUKwillmanufactureacarwithadifferentoperationthanacarmanufacturerinItaly(forexampleJaguarandFerrari).Botharetryingtotakeadvantageoftheoperationaldifferencethattheyhavebetweenthem.AndbothcompaniesaretryingtosellacarinAmericaforagreatervalue.Soifyouwantyourproducttohaveanappealonaglobalscale,thenobviously,marketingonaglobalscaleisrequired.AdvantagesofGlobalMarketingLowerMarketingCosts:Ifyouaretoconsiderlump-somecostthen,yes,itishigh,butthesamecostevengoesevenhigherifthecompanyhastomarketaproductdifferentlyineverycountrythatitisselling.GlobalScope:Scopeofthiskindofmarketingissolargethatitbecomesauniqueexperience.BrandimageConsistency:Globalmarketingallowsyoutohaveaconsistentimageineveryregionthatyouchoosetomarket.QuickandEfficientUseofIdeas:Aglobalentityisabletouseamarketingideaandmoulditintoastrategytoimplementonaglobalscale.UniformityinMarketingPractices:Aglobalentitycankeepsomedegreeofuniformityinmarketingthroughouttheworld.DisadvantagesofGlobalMarketingInconsistencyinConsumerNeeds:AmericanconsumerwillbedifferentfromtheSouthAfrican.Globalmarketingshouldbeabletoaddressthat.ConsumerResponseInconsistency:Consumerinonecountrymayreactdifferentlythanaconsumerinanothercountry.CountrySpecificBrandandProduct:AJapanesemightlikeaproducttohaveatraditionaltouch,whereasanAmericanmightliketoaddaretromodernlooktoit.Inthiscase,aglobalstrategyisdifficulttodevice.TheLawsoftheLandHavetobeConsidered:Originalcompanypoliciesmaybeaccordingtothelawsofhomecountries.Theoverseaslawsmaybeconflictinginthesepolicies.InfrastructuralDifferences:Infrastructuremaybehamperingtheprocessi