Globalisation

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

Globalisation can be defined as a historical phase of accelerated expansion of market capitalism similar to that which was known in the nineteenth century during the Industrial Revolution. This is a fundamental transformation of companies related to the recent technological revolution which led to a restructuring of economic and social forces to a new territorial scale.Today we can say that Globalisation and open markets have been very positive and some negative consequences. Globalisation has enabled individuals, companies and nation states to influence faster and deeper than ever on the actions and events worldwide, and at a lower cost, and also to derive benefits for hemselves.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Internationalization1

Problem statement1

Theoretical framework2

Aims and objectives2

Research questions2

CHAPTER 2: LITERATURE REVIEW3

Globalisation3

Theoretical Basis of Globalisation and Its Impacts5

View from Professor Karl Moore and Professor Alan Rugman6

CHAPTER 3: METHODOLOGY9

Research Design9

Secondary Research Methods10

Qualitative research method10

Reliability and validity12

Ethical Concerns13

Significance14

Literature Search14

CHAPTER 4: ANALYSIS AND DISCUSSION15

Globalisation affect local business performance15

Globalisation affect marketing strategy of local business17

Local business can maintain their performance and marketing strategy in Globalisation17

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS19

Recommendations23

REFERENCES24

CHAPTER 1: INTRODUCTION

Introduction

The concept of financial Globalisation is undoubtedly one of the most commonly used in the late twentieth century. The Globalisation of the economy has upset the order of things: it acts on the changing the rules of competition, the expansion of trading zones (transition a business “inter-national” trade “inter-regional”), the Uniform cultural but also on the exploitation of poorer countries. Competitive forces have caused the global market to become more volatile. This has increased the market complexity. The complexity of the market complicates the decisions germane to the management of resources and the establishing of relationships that support the firm's strategic direction. This thesis develops and tests a conceptual model that is proposed to address the complexity of the global market (Robert 2008, 24-28).

Internationalization

Internationalization reflects a firm's level or extent of international diversification and is often reflected by the number of different markets in which a firm operates and their importance to the firm, and is most often measured as the percentage of foreign sales to total sales (FSTS). Global market diversification provides firms with opportunities to increase returns by leveraging existing products and competencies across multiple global markets for higher performance with lower risk. Global diversification offers opportunities for economies of scale and scope (Haahti 1998, 160). According to Hitt, Hoskisson, & Kim (1997), diversity of markets also increases the likelihood that innovation will satisfy the consumers' needs. International diversification also provides firms with the ability to maximize resources across markets through global sourcing, which insulates the firm from negative environmental ...