Question

**Marketing major**

Global marketing does not necessarily mean operating everywhere since there are forces affecting global integration and global marketing. Justify this statement using examples based on the world economic trends.

Answer 1

Economic growth in key developing countries creates market opportunities that provide a major incentive for companies to expand globally. Due to the rising per capita incomes in India, China, and elsewhere, the growing ranks of middle-class consumers have more money to spend than in the past. At the same time, slow growth in industrialized countries has compelled management to look ahead for opportunities in nations or regions with high rates of growth. Also, the economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.

A driving force is also the global movement towards free markets, deregulation and privatization. The trend towards privatization is opening up markets that were previously closed, generating tremendous possibilities.

Global factors beyond the control of individual organisations, but which can influence the manner companies function, can be regarded as the worldwide variables that influence the international marketing environment. These variables include cultural and social influences, legal problems, demographics, and political circumstances, as well as natural environment and technological modifications.

Some significant global marketing organisations engaged in this stage are UNO, World Bank and WTO.