The statistics that best reflects the growth of globalization is the value of cross-border world trade expressed as a percentage of total GDP: it was around 15% in 1990; is some 20% today and is expected by Mckinsey & Company to rise 30% by 2015.
Use the word in this business context is alleged to go back at least as 1944; but its first very visible appearance was in the writings of Theodore Levitt, a professor of marketing who foresaw " the emergence of global markets for standardized products on a previously unimagined scale of magnitude".
Globalization is encouraged by:
- The growing liberalization of market around the world, giving western multinationals access to new customers they never thought they would be able to reach.
- Easy internet access and cheap international telecommunication
- The rapid growth of large developing countries such as China, India and Brazil, and their growing demand not only for western consumer goods and technologies but also for goods and services from other developing countries.
Companies have approached globalization in two ways. On the one hand are those that have made little concession to local tastes and manufacture their goods in a few centralized production facilities that follow strictly uniforn standards.
On the other hand are companies that tailor their products or services for each local market. Among those are Japanese carmakers such as Toyota, which has plants in several countries producing for local markets, and Coca -Cola which never tastes the same from one country to the next.
Strategic Management- Building Competitive Advantage is now the official textbook of Mahatma Gandhi University...
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