“The Globalization of markets” is an article written by Theodore Levitt, which reveals elements of international business. The article argues that international markets emerge when there are business activities straddling two or more nations. The issue of market globalization is widely debated today because it is seen as one of the best approaches to realize economic growth and sustainability. From a global viewpoint, the issue of globalization has led to creation of a village-like global world where there is easy access of raw materials for businesses as well as market for the finished products.
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The article comprehensively analyzes local business entities and their influence to global markets, and acknowledges that market globalization deals with the continued impact on economic sustainability and growth of capital, labor forces and movements of services and goods across international borders.
According to the observations recorded by Theodore Levitt within his article “The Globalization of markets”, globalization has basically played a major role in promoting economic growth by encouraging openness and monitoring investment rates among countries. Basically, there are different ways to globalizing markets. A good example includes reducing the existing trade barriers or getting the government out of international business. Levitt asserts that globalization of international markets is pushed by the international nations to promote the developing nations through adjustment of loans and adoption of the WTO negotiation. The main concern is how the industrialized nations will address the issues raised by the developing nations in order to help them realize their goals. This will make it possible to transform the international trade and make every partner benefit adequately from international trade.
The article claims that majority of the developing nations have become extremely vulnerable to the sudden short-term surges in import. These have been leading to permanent yet devastating impacts on the rural communities. For example, farmers are negatively affected by such liberalization especially from the developing countries. That being the case, the developing countries have been opposed to the trade liberalization policies by arguing that the developed nations have relevant instruments and access to protect themselves and as a result stabilizing their domestic markets . The countries believe that better protection is needed such as monitoring the kind of services and goods allowed in the countries. As we have seen from the article , there are a wide set of contrasting interests and perspective of the developing and developed nations with respect to global trade markets because of the different gains of the countries. The developed countries have been arguing that the poor countries should lift the existing trade barriers and adopt anti-dumping protectionist and procedure policies on different products and agricultural materials. On the other hand, the developing nations see this is ‘oppression’ and therefore continue questioning the significant of free trade towards reduction of global poverty and improving the economies of the less developed societies. The developing nations have been pushed to an extremely non-competitive business situation. The nations therefore view the developed world as having double applications by advocating for free trade while at the same time buying exports from the developing nations at a very low amount and increasing charging tariffs. Increasing the tariffs is one approach to ensure that the gains are as low as possible for the exported materials and products. The main interest for the developing nations is to address this issue in order to make sure the countries can promote their economies.
According to economic theories, the article, The Globalization of markets” by Theodore Levitt indentifies the reduced amount of gains from exports as the leading factor towards poor economic growth for the developing nations. This is because their economy mainly depends on the gains from exportation of unprocessed industrial products and agricultural produce. The current debate is to have arrangements whereby nations should look for ways of removing the existing trade barriers at required arrangements as a way of liberalizing their bilateral trade instead of adopting international policies. This is because such policies will affect different nations differently. The developing countries have been responsive to such arrangements in comparison will the developed ones which still make it hard for the agricultural and other industrial goods from the developing world to access their markets. The barriers to the exportation are a result of intellectual property and tariff barriers. Other issues raised by the developing nations include rights and sanitary standards, issues of labor, and the perquisites to do with the environment.
Nevertheless, globalization has also been linked to some business growth impediments especially in the United States of America. The global financial crisis which emanated in the united states of American had tense and adverse results in other corporate organizations. Majority of these corporate organization felt an impact as a consequence of international global interlinks which have been created between domestic and foreign organizations. In addition, globalization has led to tense competition in the market. Some corporate organizations have immense reserved capital which necessitates them to venture in any market despite the stipulated barriers. This has led to global market dominancy by few corporate organizations with a suppression of the upcoming ones. Some of the corporate organization which have created a market dominancy in the global world include the Microsoft corporation, Coca cola ,and MacDonald’s.
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