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DRIVING FORCES AFFECTING GLOBAL INTEGRATION & GLOBAL MARKETGING. Multilateral economic agreements. Converging market needs & the information revolution. Transportation & communication improvements. Product development costs. p. 56.
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Multilateral economic agreements
Converging market needs & the information revolution
Transportation & communication improvements
Product development costs
World economic trends
The Association of Southeast Asian Nations, commonly abbreviated ASEAN is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand.
Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam.
Its aims include the acceleration of economic growth, social progress, cultural development among its members, the protection of the peace and stability of the region, and to provide opportunities for member countries to discuss differences peacefully.
ASEAN- Other Countries
ASEAN has concluded free trade agreements with PR China, Korea, Japan, Australia, New Zealand and most recently India.
The agreement with People's Republic of China created the ASEAN–China Free Trade Area (ACFTA), which went into full effect on January 1, 2010. In addition, ASEAN is currently negotiating a free trade agreement with the European Union.
Cost of developing a new drug in 1976- $54M
Cost of developing a new drug in 2009-$400 Million
Such huge investments can be recovered only in global market place.
Refer Table 1-10 on Page 58
Global marketing strategies generate greater opportunities and greater revenue which intern support design and manufacturing quality.
A global company can leverage its experience in any market in the world.
It can draw on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been tested in actual markets and apply them in other comparable markets.
ABB- 1400 subsidiaries in 140 countries.
Very famous for running the operations with the minimum number of staff
The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages within a single factory.
Also, finished products can be produced by combining components manufactured in scale-efficient plants in different countries.
The larger scale of the global company also creates opportunities to improve corporate staff competence and quality.
A major strength of the global company is its ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets.
Global companies utilizes the resources where there is the greatest opportunity to serve a need at a profit
Management myopia & Organizational culture
Opposition to globalization
National controls – (to protect local industries)
The global economic environment
Centrally planned capitalism
Centrally planned socialism
Eg: United States
Stages of Economic Development (p. 80-93)
BIG EMERGING MARKETS (BEMs)
B R I C
2007 G-8 leaders in Germany