Organizations Become More Global

To some the word planetaryisation may come out a clich. To others, it may appear an end in itself. Competitive pressures ar creating the need for most companies to give-up the ghost Global.Globalization is one means forbecoming and remaining a world-class competitor a goal encased in the mission statements of most corporations.When developing a globalization dodging, it is clear that the appear trades present the superior opportunity. The emersion projections for Europe, Japan and the United States pale in comparison to some of the emerging markets.Emerging MarketsThroughout the emerging markets an remarkable consumer market boom is driving up claim for western-style goods and services. The largest segment of consumers in these markets is a decade piteous of its peak spending years. In India alone, sales of consumer goods argon rising at 14% per year, while mainland China is growing at almost 20% per year. equalise the consumer-spending boom with the still burgeoning n eed for infrastructure improvements and youll confirm a range of opportunities that extends into the trillions of dollars. Projects atomic number 18 planned or underway in many of these countries to upgrade dit andtelecommunication systems, explore energy resources, build precedent generation facilities and provide health care facilities.In addition, the privatization efforts are presenting an incredible range of opportunities for investors, lending institutions, service providers and manufacturers.Four chance on trend influence emerging market potentialThere are four key trends that are influencing the emerging market potential1. Demographics Overall world population growth is now concentrated in thedeveloping world. Where industrial nations are facing anincreasely older population, the emerging markets remainyoung. The developed world comprises only 11% of the worlds population.2. G overnments Many countries that once relied on centrally planned economies are becoming market- driven. Industries that governments previously restricted to foreign companies are now possible action to foreign investment.3. Communications Access to the emerging markets is increasing due to hugedevelopments in communications applied science such as the Internet and electronic commerce. cyberspace represents a profound shift in the temper of communications as well as our knowledge of distance.4. Urbanization As infrastructure improvements are made, urban growth in the emerging markets entrust delay to explode.Estimates indicate that the emerging markets share of world imports will double by the year 2010, rising to over 38%. Companies dazzled by the magnitude of these poem must be equipped with the appropriate knowledge, information, and strategy to make its market forays successful.MACRO LEVEL Industry Globalization is due to such factors as Level of supranational trade Intensity of international competition planetary product standardization Presence of key compet itors in all key international markets. Intra-firm trade proficient intensity International linkages of value-added activities among countries International integration of value-added activities among countries ecumenical FREETRADE AGREEMENTS WORLDWIDE ECONOMIC REFORMS WORLWIDE FINANCIAL REFORMS REMOVAL duty BARRIERS BY COUNTRIES REMOVAL OF SUBSIDIES COUNTRIES ETC ETC ====================================================THE PUSH FACTORS OF GLOBALIZATIONMarket Drivers Per capita income converging among industrial nations Convergence of lifestyles and taste Growth of global and regional channels Establishment of world brands Spread of global and regional mediaCost Drivers Continuing push for economies of scale ( only when offset by flexible manufacturing) Accelerating technological transition Advances in transportation (e.g., use of FedEx to deliver urgent supplies from one continent to another) Emergence of newly industrializing countries with juicy capability an d low labor costs (e.g., China, India and Indonesia)