Literature Review On Globalization

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Chapter 2
Literature Review
Globalization describes the trend of companies buying, producing, developing and selling its good and services in various and most countries and regions in the world. With the appearance of globalization, and an interconnected world, many companies try to expand their services and products into foreign markets. Internationalization gives way to new and potentially more profitable markets, increases competitiveness of the firm, gives access to new ideas, innovations and technology (Hollensen, 2007).
Development of the global marketing concept
According to Kotabe, global marketing refers to marketing activities by firms that focus on the following:
I. Standardization efforts— standardizing marketing programs across different countries particularly with respect to product offering, promotional mix, price, and channel structure. Such efforts increase opportunities for the transfer of products, brands, and other ideas across subsidiaries and help address the emergence of global customers.
II. Coordination across markets— reducing cost inefficiencies and duplication of efforts among their national and regional subsidiaries.
III. Global Integration— participating in many major world markets to gain competitive leverage and effective integration of the firm’s competitive campaigns across these markets by being able to subsidize operations in some markets with resources generated in others and responding to competitive attacks in one market by
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