Essay about Impact Of Globalization On Foreign Markets

2169 Words Sep 10th, 2016 9 Pages
Introduction:
Today 's infrastructure enables an easy access to people and places all around the world along with products, services and technologies that can move easily across national borders. Companies today have increased opportunities to enter foreign markets and it is common that they operate in international environments (Albaum and Duerr, 2008). This environment is also called ‘globalization’ that has become an interesting topic in the academic world. The meaning of globalization according to Friedman (1999, p.7-8) is as following: “The inexorable integration of markets, nation states, and technologies to a degree never witnessed before- in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than before, the spread of free-market capitalism to virtually every country in the world.” To illustrate this statement, (Gillespie, Jeanett, Hennessey, 2004) mention that the combined value of world exports (in the form of physical goods or merchandise) reached $6 trillion in 2001. For the period 1990-2000, world merchandise exports grew 4 percent or more in most years, exceeding world gross domestic product (GDP) growth.
Going towards globalization and internationalization provides, at the same time, both opportunities and challenges for companies (Hudea and Papuc, 2009). The companies operate in more than one country, which gives them time to develop their production, so the knowledge and the impact…

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