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 the globalisation process. The factors in question, though, have really contributed to the growth in the relationship between activities in the market and other operations in business, 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 globalisation is enhanced, economic sectors such as transport and ICT grow. Globalization and so is the international trade benefit a company in various ways, for instance, apart from the likelihood of profit growth, companies can reduce their overdependence on their already defined markets. Companies are also able to expand their businesses. Currently, companies can choose from a wide range of products, courtesy of globalisation and international trade. Companies can no longer ignore globalisation due to the various changes and opportunities that these international markets offer. In a nutshell, globalisation is a process of linking various processes of society, culture and environment to the economy and other fields relating to the market. Globalization, therefore, cannot be ignored. My paper discusses the trade implications of globalisation, 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 its goods and services because it has 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, which is known to provide 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. It is as a result of globalisation that 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 come with 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 even political differences. When it comes to these differences, companies have no option but to incur another legislative cost. Any company with intentions of opening a market for its goods and services has to look into the local culture and local 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 are not the result of 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 responsibility of the company is heavy, apart from meeting the socio-environmental requirements for the good of the society, accompany also supposed to succeed in business.
Trade Implications of globalisation are social, environmental and cultural. The factors highlighted have a strong relationship to the economy, market and production. The consideration of these factors when developing a market activity across any country is vital. Globalization will, in detail, give an explanation of the market of a company’s products in a different country, trade development internationally and development in communication. Through globalisation, the passing of products, services and capital across the border is improved. Through globalisation, 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 globalisation. 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. It is for this reason that the company needs to orient its managers on 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, and in so doing, 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 success of the business, 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 given society determine what is good and what is right. Values tell the acceptable from the unacceptable. For instance, in a country like the United Kingdom, people are self-centred and tend to 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 individuals making purchasing decisions focus on the needs of a larger group, such as a family. When companies are making marketing strategies, they 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 include repeated patterns and behaviour of a community. It is these rituals that dictate how births, marriages, graduations, funerals and other social events are conducted. Rituals can also include a commitment to watching a show or going out for dinner 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 need to constantly remind employees that culture is physical and tangible and should always be recognised to meet the company’s mission and vision.
In conclusion, globalisation 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 not only to a company but also to 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.
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