INTERNATIONAL MARKETING MANAGEMENT

International marketing management

International marketing management

PART 01

Introduction

This paper reviews some puzzling economic aspects of globalisation and argues that they cannot be satisfactorily addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general equilibrium is sketched. The model ensures theoretical consistency by assuming that firms are large in their own markets but small in the economy as a whole, and ensures tractability by assuming quadratic preferences defined over a continuum of goods. Applications considered include the effects of trade liberalisation on industrial structure, on cross-border merger waves, and on the distribution of income between skilled and unskilled workers.

In simple terms, globalization is the economic, cultural and traditional share and communication between various countries across the world. It is a continuous socio economic process which is a major step towards the development of the country. Through the process of globalization, there is intermingling and blend of various cultures, traditions and thoughts and interchange of ideas. Another major aspect of globalization is the business and trade links between various countries across the globe. This fact has probably given rise to the globalization of markets.

Globalization and market changes

Globalization has been a major factor behind the improvement of the market changes in India. Prior to the liberalization of the market in the country, India suffered a huge market set back and it led to problems in the balance of payment accounts. The first wake of globalization was felt in the country in the 1990s when the government initiated the open market and economic liberalization plan. This led to huge improvement in the market scenario of the country which significantly changed from the state controlled market to the consumer market. Due to the emergence of the consumer market, there was an increase in demand and supply. The positive change in the market pattern led to the improvement in the standard of living in the country.

Today, India is one of the largest growing economies in the world and ranks as the 4th largest in terms of the purchasing power parity (PPP). In terms of the market exchange, it ranks as the 12th largest economy in the world. The country has also enjoyed a significant growth in the Gross Domestic Product (GDP) due to the improvement in the market and the increase in exports. The annual rate of economic growth ranges between 6 and 7%. The growth rate of the country was around 6.7 % in the financial year 2008-09. In the recent budget, the government has taken more steps to ensure high economic growth up to around 9%. Renowned financial organizations like the World Bank has also expected much optimism that the growth rate of India may even surpass China. It has projected that the growth rate will be around 8% in the year 2010.

Improvement of various sectors

Globalization of markets has also cast a favorable effect on various sectors in India. According to recent surveys, the industrial sector in the country has significantly grown at a rate of ...