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In this paper, the authors discuss the globalization movement from a marketing perspective. Although globalization has brought many benefits, it has also caused systemic problems such as increasing socio-cultural-economic unrest and friction between nations. It is important for marketers to recognize the salient pros and cons of the globalization and move with caution in formulating policies and strategies.
Introduction
The purpose of this paper is to show how important it is marketers to understand the pros and cons of globalization so that they are better able to formulated proper strategies. For our purpose, globalization means rapid movement of economic factors such as capital, labor, technology, and products and services, and integration of economies around the world through trade and financial flows. It also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here.
Globalization is not just a recent phenomenon (IMF 2002). And, as the globalization movement is increasingly becoming dynamic and complex marketers should be concerned about how to harness its benefits without getting bogged down by its pitfalls
According to Kearney, September 11 was a gruesome vindication of the argument that global integration had widened the gap between the haves and have-nots, and in doing so created resentment that exploded with the destruction of the most famous icons of Western capitalism. (Kearney 2003, 60). He further argues that the persistence of al Qaeda underscores how hard it is for governments to stamp out stateless, decentralized networks that move freely, quickly, and stealthily across national borders to engage in terror. Besides, we are simultaneously on to five different wars: the wars on drugs, arms trafficking, intellectual property violation, alien smuggling, and money laundering.
In the following paragraphs, we will review ten pros and cons of globalization from a marketing perspective.
The Pros
1. Globalization leads to more economic growth. Economic growth and development is important for both rich and poor nations. Without economic growth, countries do not feel economically strong, safe, and secure. Therefore, understanding and implementing proper marketing approaches that lead to economic growth is important.
Effective marketing is vital to economic growth and development (Rcddy 1996). Paradoxically, a major reason for...