Globalization

E1C01_1

09/23/2009

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GLOBALIZATION IMPERATIVE

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HAPTER OVERVIEW

WHY GLOBAL MARKETING IS IMPERATIVE GLOBALIZATION OF MARKETS: CONVERGENCE AND DIVERGENCE EVOLUTION OF GLOBAL MARKETING APPENDIX: THEORIES OF INTERNATIONAL TRADE AND THE MULTI-

NATIONAL ENTERPRISE

Marketing products and services around the world, transcending national and political boundaries, is a fascinating phenomenon. The phenomenon, however, is not entirely new. Products have been traded across borders throughout recorded civilization, extending back beyond the Silk Road that once connected East with West from Xian to Rome on land, and the recently excavated sea trade route between the Roman Empire and India that existed 2,000 years ago. However, since the end of World War II, the world economy has experienced a spectacular growth rate never witnessed before in human history, primarily led by large U.S. companies in the 1950s and 1960s, then by European and Japanese companies in the 1970s and 1980s, and most recently by new emerging market firms, such as Lenovo, Mittal Steel, and Cemex. In particular, competition coming recently from the so-called BRIC countries (Brazil, Russia, India, China) has given the notion of global competition a touch of extra urgency and significance that you see almost daily in print media such as the Wall Street Journal, Financial Times, Nikkei Shimbun, and Folha de S~o Paulo, as well as in TV media such a as BBC, NBC, and CNN. With a few exceptions, such as Korea’s Samsung Electronics (consumer electronics) and China’s Haier (home appliances), most emerging-market multinational companies are not yet household names in the industrialized world, but from India’s Infosys Technologies (IT services) to Brazil’s Embraer (light jet aircrafts), and from Taiwan’s...