Impact of Globalization on International Market

This article examines the impact of globalization on the international market, including its effects on developing countries, multinational corporations (MNCs), and international marketing. It discusses the negative aspects of globalization, such as job outsourcing and increased costs, as well as the positive aspects, such as increased connectivity and trade. The article also explores the backlash against globalization and the uncertainties faced by MNCs in the global economy. Additionally, it highlights the importance of agility and preparedness for MNCs in order to navigate the opportunities and threats presented by globalization.

In S.J. Kobrin’s literature, Bricks and Mortars in a Borderless World, deals with the issue of
globalization and the effect of globalization from a political, social and economical angle on
the international market. Going by the history of globalization, one can deduce that
globalization has increased the connectivity between different countries and also increased
the trade and FDI at a large scale between the years 1989 and 2008. However, this trend came
to an end when the recession started and this article investigates the various aspects of the
resentment during the period over globalization.
According to some critics, globalization has its negative impact on the developing countries.
It is seen as a weapon to sweep away domestic jobs to other countries for cheap labour. It can
also lead to an increase in cost due to comparative or absolute advantage, which might lead to
a decline in the well being of the country or other countries, if not properly managed.
Another, disadvantage is the increase in the wages of the labourers, which may lead to
degeneration of corporate profitability (Kuepper, 2018).
The article explores the backlash of the globalization as a social perception and the technological
changes across the globe and any individual economy cannot be independent in this global economy.
Due to the stagnation of the globalization and the backlash, the MNCs are at a greater risk of
uncertainty. Technology is opening up the varied new potential for each market and it is happening at
a very fast pace and in turn the speed of business is also increasing. The connection with the emerging
markets help the MNCs to develop best practices from them, which has a long term focus and fast
decision making policies (Barton, 2016).
Globalization has become widespread and made the global economy volatile. The future is uncertain
with the rate of government rates going down, turbulent political scenario and fluctuations in the stock
market. Thus, to survive in this context, the MNCs need to be nimble and agile and be completely
prepared to brace the new opportunities and threats (Cramer, 2017).
In the context of international marketing, globalization has had a positive impact by bringing the
world closer to each other. However, the MNCs need to be prepared for the growing competition in
the emerging markets and the other foreign markets. International marketing has taken advantage of
the globalization as well as contributed to its growth (Muciimi & Ngumo, 2014).
Due to the effect of globalization, the economic depression in one country can generate a detrimental
reaction across the globe affecting the companies in the process. Consumer response, legal concerns,
and difference in culture can affect the operation of an individual organization across the globe. It is
evident, that the globalization cannot come to a standstill and the MNCs are benefited from the same
provided they can get along with the competition, speed and differences. Globalization has been
featured as a negative aspect mainly from the political point of view and the path of the MNCs are
also volatile due to these uncertainties.

References
Barton, D., 2016. How Do Multinationals Keep Up with Globalization? Connecticut:
McKinsey Yale School of Management.
Cramer, J., 2017. Corporate social responsibility in different political cultures. In Corporate
Social Responsibility and Globalisation. London: Greenleaf Publishing. pp.55-75.
Kuepper, J., 2018. Globalization: Good or Bad for Developed Countries? [Online] Available
at: https://www.thebalance.com/globalization-good-or-bad-for-developed-countries-4011193
[Accessed 3 April 2019].
Muciimi, E.N. & Ngumo, E.M., 2014. Implications of Globalization for International
Business Strategy: A Multi-Sectoral Approach. International Journal of Science and
Research, 3(4), pp.68-77.