Globalisation

Globalisation

1. Permanently changed the landscape of how consumers behave, think & spend

2. Culture

   • Creates the ability to purchase life changing goods for consumers
   • Provides flexibility through having consumption alternatives as reasonable prices
   • International trade: creates business opportunities and ethical issues facing global businesses
     • Requires an understanding of foreign exchange markets & analysis of trade impact
   • "westernisation"
   • "comsumerist culture"
   • Loss of cultural diversity

3. Marketing & Cultural Differences

   • Marketers: new & different advertising strategies when dealing with different nations
   • Power Distance
     • the way members perceive differences in power when they form interpersonal relationships
   • Uncertainty avoidance
     • the degree to which people feel threatened by ambiguous situations
   • Masculinity/ femininity
     • how culture defines roles of sexes
   • Individualism
     • the value of the welfare of the individuals vs the group

4. Free Agreements

   • Global trade = free trade agreements & economic unions
   • Positive = increased variety of goods @ reasonable prices
   • NAFTA
     • North American Fair Trade Agreement
     • 1992 by George H W Bush
     • Removed barriers to limit inter-country movement of supplies, goods & services
     • Results
       • Increased number of investment opportunities
       • Procedures put in place to solve trade regulation problems
       • Increased manufacturing will occur (new markets)
       • Public buyers = biggest winners
       • Public workers = biggest losers
     • Prices are lower for everyone
       • More options of products/services
         • Job losses = people can use their labor in a competitive US industry