Globalization and its Impact on Global Markets Free Essay Example, 3000 words

Globalization has several facets but mainly it deals with the globalization of markets and products. As far as globalization with respect to markets is considered, it is basically referred to as the merging and integration of distinct markets into one huge marketplace at the world level. It is widely considered that the preferences, trends, tastes, and behavior of consumers in different nations provide an initial base to converge the market on some sort of a single norm and thus assist in developing the global market. Coca Cola soft drinks, burgers of McDonald's, coffee of Starbucks, credit cards of Citigroup, furniture of IKEA, and video games of Sony PlayStations are some leading examples of this trend. By offering a universal product, the companies actually form a global market. In order to gain the benefits of international investments, it is not necessary for a company to be of the same strength as the multinational companies, e.g. in the USA, almost 90% of the firms, which mak e foreign investment at a global scale, don t have more than 100 employees while their market share has been rising for last ten years and now has crossed 20% of the overall market share (World Trade Organization, 2009). We will write a custom essay sample on Globalization and its Impact on Global Markets or any topic specifically for you Only $17.96 $11.86/page Although Coca Cola, McDonald's, Pizza Hut, Starbucks, IKEA, and some other companies have dominating influence on international markets, even then there are certain differences which still persist with respect to various dimensions. It includes consumer behavior like preferences and taste, cultural values, distribution channels, business systems, and legal regulations.