Market Globalization Essay

Globalization is a natural phenomenon which refers to the changes in the world where countries are moving from self-contained countries and toward a more integrated world, in both cultures and markets. Hence, globalization of business is the change in business from a company associated with a single country to one that operates in multiple countries . The impact of globalization on a business can be easily be categorised into two broad sections, which are market globalization and production globalization.

Market globalization can be specifically defined as the barriers declination to selling in another countries other than the home country. This huge change will makes it easy for a company to begin selling internationally. Since lower tariffs keep consumers prices low, fewer restrictions when crossing the borders make it more feasible to enter a foreign market. It is strongly recommended for a company to adjust their products to certain cultures and marketing messages according to the specific countres when developing business strategies.

Nevertheless, production globalization is the sourcing of materials and services from other countries to gain advantage from price differences in different nations. A company might purchase materials and components from multiple countries and

Such business indirectly empower domestic and world economies to achieve a larger variations of services, products, investment, knowledge and human resources. Many may know that international trade was and is still significantly affected by the growing Multinational Corporations (MNCs). Simultenously, MNCs play a great impact on the trade flows and policy and thus resulting a trend where these companies increasing their reliance on Foreign Direct Investment (FDI) as an option to export and sell their goods and services in other