Abstract
Globalization is an interrelationship among countries. It involves how countries relate and how this relationship causes development as a result of trading their various items and services. Globalization over the years has been able to influence various factors related to business culture and environmental factors. The growth in various economic sectors such as ICT and infrastructure has greatly affected globalization. The factors in question though have really contributed to the growth in the relationship between market activities and other business operations such as accountancy. Every company aims at profit making. In so doing, companies are going extra in looking for business opportunities outside their mother countries. When globalization is enhanced, economic sectors such as transport and ICT grow. Globalization and international trade benefit a company in various ways, for instance, apart from the likelihood of profit growth, companies can reduce their over-dependence on their already defined markets. Companies are also able to expand their businesses. Companies can choose from a wide range of products, courtesy of globalization and international trade. Companies can no longer ignore globalization due to the various changes and opportunities these international markets offer. In a nutshell, globalization is a process of linking various processes of society, culture, and the environment to the economy and other fields related to the market. Globalization, therefore, cannot be ignored. My paper discusses the trade implications of globalization, the cultural implications of the sales process and how companies can adapt to these cultures.
Trade Implications of Globalization
The decision of the company in the field of sales is very important. The company can sell their goods and services because they have created awareness and enhanced events. Other factors that play an important role in market activities are the effect of local culture and consumers’ views on the company’s products. It is also vital for a company to research the per capita income of its intended market Sharbaz et, al (2016). When a company carries out this research, it can determine how its various decisions on marketing policy will affect its targeted customers. It is the dream of every company to experience significant development in business. The developments can be realized by finding a route to the international market that provides such opportunities. Globalization involves finding a market for your products beyond your mother country. It provides an opportunity for trading in goods and services across another country. As a result of globalization, companies can find a market for their goods and services made in different countries and even abroad (Surugiu,2015).
Globalization has enabled consumers in different countries to find access to products and services in other countries outside their homes. However, this has significant implications for companies’ resources. For instance, companies are expected to meet the costs of crossing borders such as tax. Some countries may be involved in social, economic, cultural or political differences. Regarding these differences, companies have no option but to incur another legislative cost. Any company intending to open a market for its goods and services has to look into the local culture and language to be better placed in the market (Knight, 2015).
Globalization is not a bed of roses for companies. Companies face a range of challenges. The challenges are diverse and do not result from marketing goods and services alone. Companies must have a program plan. Companies must identify their sources of transport and market activities. Companies are also required to cope with what other countries demand. Different countries subject companies to different trade, culture and legislation policies. Companies are, therefore, left with no option but to comply with all these policies. The company’s responsibility is heavy, apart from meeting the socio-environmental requirements for the good of society, it is also supposed to succeed in business.
Trade Implications of globalization are social, environmental and cultural. The factors highlighted strongly relate to the economy, market and production. The consideration of these factors when developing a market activity across any country is vital. Globalization will explain the market of a company’s products in a different country, international trade development, and communication development. Through globalization, the passing of products, services and capital across the border is improved. Through globalization, fields in economic life such as the process of production, funds, marketing and parastatals are discussed.
Currently, it is completely difficult for a company to factor out globalization. Companies are experiencing very strong competition in domestic markets. The few opportunities available in the foreign market and to foreign customers are also competitive. Marius (2015) states that the market covers the economic, cultural, and technical aspects of both independent and multilateral countries and cannot be ignored. For this reason, the company needs to orient its managers to marketing and international standards. Globalization, however, has continued to be supported by healthy trade across countries, minimised barriers in trade, and simple processes of carrying out business across countries.
Cultural Implications of the Sales Process
Every company requires business success, so these companies are looking out for any available market opportunity. These opportunities as discussed above are not available domestically only but also in foreign countries. A product may be introduced at an international level as a result of its diversification and growth. In acquiring the business’s success, a company must consider the cultural implications of the country and the customers where the product is being taken for the first time. The culture of a person greatly influences how people consume a product. The cultural influences are discussed below.
Values: In any society, values determine what is good and right. Values tell the acceptable from the unacceptable. For instance, in a country like the United Kingdom, people are self-centred and purchase goods and services that rotate around their lives. In such a society, a company will put market policies that focus on individuals. On the other hand, in a country like Japan, the purchasing decisions focus on the needs of a larger group such as a family. Companies use marketing strategies to focus on collective groups (Atkins, 2015).
Symbols: In a marketing language, symbols refer to the language. Language can be spoken, or it can be expressions of the body. The community takes pride in their language. Language in several ways helps a society maintain its cultural heritage. When a company is making strategies, especially those involving advertisement, it will do so in a way that conforms to the language of a community or society. The symbol may not be language only but also music, dance and drama.
Rituals: They include repeated patterns and behaviour of a community. These rituals dictate how births, marriages, graduations, funerals and other social events are conducted. Rituals can also include a commitment to watching a show or dining on a particular day. Companies should come up with strategies for how individuals interact with their products during this period.
Adaptation to the Cultures
The question remains: where does a company start?
- Culture should be the top priority of the business administration. When putting down strategies, managers in business should focus on the diversity of culture of their consumers.
- A company should study both the current and upcoming culture of their consumers. In so doing, a company can put down plans and strategies to avoid surprises.
- Lastly, the organisation has to measure culture using appropriate tools. The empirical tools should be able to detect the customers’ attitudes and those of employees, too.
- Finally, a company must constantly remind employees that culture is physical and tangible and should always be recognised to meet the company’s mission and vision.
In conclusion, globalization is something that people cannot ignore. Companies are expanding their markets due to linking to foreign markets. Completion in the domestic market is stiff, and the need to expand further is no option. The benefits of international networking are to a company, society, and consumers. Consumers now have a wide variety of products and services to choose from.
References
Surugiu, M. R., & Surugiu, C. (2015). International trade, globalisation and economic interdependence between European countries: Implications for businesses and marketing framework. Procedia Economics and Finance, 32, 131-138.
Atkin, D., & Donaldson, D. (2015). Who’s Getting Globalized? The Size and Implications of Intra-national Trade Costs (No. w21439). National Bureau of Economic Research.
Knight, J. (2015). Trade creep: Implications of GATS for higher education policy. International Higher Education, (28).
Shahbaz, M., Mallick, H., Mahalik, M. K., & Sadorsky, P. (2016). The role of globalisation on the recent evolution of energy demand in India: Implications for sustainable development. Energy Economics, 55, 52-68.
