GOING GLOBAL, ACTING LOCAL

Going Global, Acting Local

Going Global, Acting Local

Globalization

Over the decades, the world scenario has been gradually transforming itself with a progressive widening interdependence between national economies and the resulting change in market conditions in which they operate businesses (Alevesson, 2001, pp. 995).

The forces that have worked on this transformation are formed by the growing homogenization of consumption processes and the integrating role played by technology by the elimination of ideological, institutional, and economic barriers. The processes of integration and unification of the various areas undertaken by these economic forces gave rise to globalization of markets that have led to the emergence and development of the global market. The phenomenon of globalization involves the interaction of complex dynamics that are characterized by the confluence of common processes, which are not only economic but also political, social, and cultural. Globalization can be understood like a multidimensional phenomenon.

A company before selling abroad must achieve a thorough understanding of international marketing environment in which it wants to operate. The marketer must study the economy of each country to consider the attractiveness of each foreign market. Important parameters are the size of the population, industrial structure, and income distribution. Each country also presents great differences in political / legislative and socio-cultural framework abroad, so the company must define its objectives and international policies.

The countries to be considered can be classified according to three criteria:

Market activity

Competitive advantage

Degree of risk

The options for foreign business for the company include:

Export;

Granting of licenses;

The establishment of joint ventures;

Foreign direct investment

Globalization is present in most facets of human activity worldwide. However, if we focus on the financial and business area, this has led to the development of new technological tools to implement projects and link with customers hundreds of miles away through the opening of new capital markets (Arthur, 1996, pp. 16). The economic interconnectedness has led to increased business productivity and reducing costs. The meaning of this word has resulted in ambiguous positions and interpretations in different ways.

Some authors have associated this term only to the economic sphere, considering a process involving several national economies into one global economy. Others agree that globalization is present in the technological, commercial, cultural and, social arena. The truth is that the complexity of this has forced entrepreneurs to undertake new challenges to attract other customers. The emergence of globalization is nothing new; it is a process that has been developing hand in hand with development of communications and technology. Macroeconomic theory supposes that both rich and poor economies can accrue significant benefits by fully integrating and participating in the global economy. By opening their economies to cross-border capital inflows, countries can improve financing opportunities through a more diversified and competitive financial and credit system, diversify risk, deepen their financial sector, and gain greater market access. 14 Specifically, free capital movements contribute to efficient allocation of capital and provide opportunities for both foreign investors and domestic residents. For lenders, the advantages include increased portfolio diversification and higher returns from more productive foreign ...