Impact of Globalization on National Markets

Discuss about the Introduction to Globalization Of Marketing Ideology.

Globalization is one of the major factors in the current scenario of international business. With the emergence of globalization, the existing pattern of international business got changed drastically. However, emergence of globalization also leads to have a few positive as well as negative impacts on the national markets (Hirst, Thompson and Bromley 2015). This is due to the reason that globalizations helped the business organizations to operate in different countries part from their home country. Therefore, it initiated more sources of cultural exchanges. This essay will discuss about how the effect of globalization on the national markets further affected the entire country and its society.

The chosen international marketing concept is “the effect of globalization on national markets”. This topic is being chosen due to the reason that in the current time, national markets are getting heavily influenced by the concept of globalization. This is in turn affecting the cultural and social aspects of the country due to the fact that market is closely related to the local social trends and patterns (Atkin and Donaldson 2015). The effect of globalization on national markets refers to the phenomenon of change in the trend and pattern of the local and domestic market due to the initiation of globalization. According to Yankuzo (2014), effect of globalization on the national markets also affects the local culture. This is due to the reason that according to the author, local cultures become more global and villages are becoming global villages. It is also being stated by the authors that indigenous cultures are more diluting with the mixture of different foreign cultures.

National markets are one of the most vulnerable areas for the effect of globalization due to the reason that in the current business scenario, majority of the countries are having market oriented economies and markets act as the gateway for global firms to enter in a particular country. With the emergence of globalization, national markets are becoming more global in nature. Prior to the emergence of globalization, national markets are more indigenous in nature and now they are becoming stuffed with foreign products. I believe that emergence of globalization is helping the national markets to become more self sufficient by offering diverse products and services to the domestic customers. However, on the other hand, it should also be noted that emergence of globalization is creating more competition and challenges for the national firms. They are becoming more exposed to the challenges posed by the global firms and thus the competition is increasing in the national markets. Thus, the main argument regarding the effect of globalization in national markets is whether globalization is affecting the country, society and people more in positive way or in negative way (Pieterse 2015). The following sections will further argue this point with the help of different views given by different authors regarding the impact of globalization on the national markets.

Positive Impacts of Globalization

India is one of the major developing countries, which is highly influenced and impacted by the emergence of globalization. Globalization in India became first relevant after the economic reforms of 1991. This opened the doors of global firms to invest and doing business in different sectors in India. I think one of the major examples of change due globalization in Indian national market is their automobile market. Prior to the economic reform of 1991, India was having very few automobile companies mostly undertaken by the government with having limited production and designs and technologies. However, after the 1991 reforms, mainly the Japanese automobile majors have taken over the market and now in the current time, India is considered as one of the largest automobile markets in the world with the presence of all the major car brands of the world. Thus, the national market of the Indian automobile sector got drastically changed with the emergence of globalization.

However, on the other hand, it is also to be noted that emergence of globalization is also having come sort of negative impacts on the market of India. This is due to the fact that globalization leads to the increase in the competition in the market with the entry of the foreign players. According to Rodrik (2018), one of the major negative impacts of globalization on the national market of India is reduction in the market opportunities of the state owned firms and the domestic firms. According to the author, global players are majorly having upper hand in terms of access to financial resources, latest technologies and process. This also led to the emergence of the monopoly power on the hands of the foreign players. In the case of Indian automobile sector, globalization and economic reform helped in attracting foreign automakers to enter in the Indian market. In the further time, domestic players such as “Hindustan Motors” cannot be able to compete and closed their business. Thus, I think that though globalization helped the Indian automobile market to get over their nascent stage, but it also increased the market orientation power of the foreign players compared to the local firms.

India’s social structure and practices are heavily impacted by the emergence of globalization. However, the impacts of the globalization are having both positive and negative factors. According to Cleveland, Rojas-Mendez, Laroche and Papadopoulos 2016, one of the major crises being faced by the Indian society by the origination of the globalization is identity. This phenomenon is not only applicable only on the Indian society but also on the major economies around the world. The authors have also stated that with the entry and poaching of the foreign players in the Indian market, the Indian society are getting more globalized and it causing losses in terms of the indigenous practices. For instance, the Indian fast food industry is getting globalized faster like no other. With the presence of global players such as McDonalds, Pizza hut and Dominos, Indian customers are getting more attracted towards them and this is taking toll to the indigenous food habit of the society. Thus, according to the authors, India is facing the issue of cultural imperialism due to the emergence of globalization in the national market.

Negative Impacts of Globalization

However, on the other hand, there are counter arguments also being given by different reasons due to the reason that Indian social pattern is also getting benefited from the origination of globalization. According to Stromquist and Monkman (2014), one of the major positive impacts of globalization on the Indian society is enhancement of the quality of education. This is due to the reason that with the initiation of the globalization, education sector also being changed with the entry of global investments. According to the authors, this has increased the average quality of the education along with development in infrastructure.

People and consumers are also being highly impacted from the globalization of national market. This is due to the reason that market constitute of consumers and thus change in the market trend will obviously have impact on them. As per Cleveland, Laroche and Papadopoulos (2015), with the initiation of the globalization on the national market, consumers are having more number of options to choose from. This is mainly due to the reason that currently foreign companies are also operating in the Indian market along with the existing domestic ones. Thus, the more will be the available options for the consumers, the more will be their upper hand in switching brands and average cost will get lowered due to the high level of competition. It is also being stated that average quality of the products available to the consumers are also enhanced with the advent of latest and updated technologies from global market. Thus consumers are now having the access to the products with global standards. However, I think that apart from the products, people are also exposing towards global trends also due to the emergence of globalization. This factor is not stated in this article but this factor is important due to the reason that Indian people are getting more influenced and driven by the global trend rather than their own.

The major impact of globalization on the market of India is their international relationships with other countries. According to Haynes, Hough, Malik and Pettiford (2017), globalization in the market caused the countries to get depended on other countries and global economy. This is due to the reason that due to the globalization, the domestic economy gets controlled by the foreign economies. Thus, change in the global trend of economy will change the domestic economy (Cohen 2014). This is also determining the relationship between the countries. In case India, I have identified that globalization lead to the increase in the relationship with some countries for India (Surugiu and Surugiu 2015). For instance, in the recent time, United States and India are enjoying a more matured relationship. This is mainly due to the reason that investment of the United States in the huge market of India is having huge potentiality (Deresky 2017). Thus it can be concluded that international relationship of India with other countries is getting determined by the business perspectives due to the initiation of the globalization.

Impact on Society and People

Globalization has also changed the approach of the marketing and how it is managed. This is due to the reason that prior to the emergence of globalization; marketing was being done considering the domestic trend and pattern of the customers (Eckhardt, Dholakia and Varman 2013). However, due to the globalization, the intensity of the market got increased and global factors are also being considered. This leads to the origination of the concept of international marketing. Currently, marketing is managed with considering all the global influencing factors and with different approaches in different regions.

According to me, I will also be affected by the globalization. One of the major impacts for me will be the education system. I am having the option of choosing my stream from large number of available courses. In addition, globalization also enabled me to opt for international institutions for my education. On the other hand, as a consumer I am also having more options in buying a certain product (Mukherjee et al. 2014). I am getting exposed to the global trends and patterns. I also think that my future will also be affected by the globalization due to the reason that globalization will open the door for the foreign investments and it will help me in having more career opportunities. However, I will also consider the negative factors such as the recession. This is due to the reason that globalization can also cause recession in the economy and this can adversely affected me by taking away jobs and other opportunities.

As a consumer, my major opportunity from the initiation of globalization is having more options and having the opportunity to have perfect quality in minimum price. I will be beneficial from the higher level of competition in the market. I as a consumer will be valued more by the marketers and products will be offered according to my tastes and preferences. On the other hand, the major threat will be overpowering my indigenous preferences by more global ones. Thus, I can fell prey to the cultural imperialism.

Conclusion

Thus, it can be concluded that international marketing is mostly applicable in the current era of globalization due to the reason that marketing approach has been changed. International marketing will only be able to help the marketers in considering the global factors also in marketing their products in the domestic location. In addition international marketing is also benefiting the customers in getting connected with the global trends and providing them with more options. It can also be concluded that in the current time, international marketing is inevitable and cannot be avoided. Thus, it should be applied in sustainable manner in order to ensure the welfare of the societies and communities. International marketing is good for the communities till it is hampering the indigenous trends. Thus, it is important to apply this concept in more sustainable way.

Reference

Atkin, D. and Donaldson, D., 2015. Who’s Getting Globalized? The Size and Implications of Intra-national Trade Costs (No. w21439). National Bureau of Economic Research.

Cleveland, M., Laroche, M. and Papadopoulos, N., 2015. You are what you speak? Globalization, multilingualism, consumer dispositions and consumption. Journal of Business Research, 68(3), pp.542-552.

Cleveland, M., Rojas-Méndez, J.I., Laroche, M. and Papadopoulos, N., 2016. Identity, culture, dispositions and behavior: A cross-national examination of globalization and culture change. Journal of Business Research, 69(3), pp.1090-1102.

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