Overview of Globalization: A Two-Headed Coin I.

The concept of the globalization of markets was first introduced by Harvard Professor Theodore Levitt with his classic article titled ôThe Globalization of Marketsö in the Harvard Business Review in 1984. In this article, Levitt (1984) assumed that the world-wide success of a growing list of products that have become household names, is evidence that consumers world-wide would develop preference for standardised products of multinational companies. Despite deep rooted cultural differences, consumer taste would become alike, or as Levitt (1984) formulated it, homogenised. In consequence, he contends, the traditional multinational corporation (MNC) strategy of tailoring it is products to the needs of multiple markets, may put it as a severe disadvantage vis-a-vis competitors who apply marketing imagination to the task of developing, advanced, reliable, standardise products at the right price on global scale.

Kenichi Ohmae (1990) put the globalization of markets more into the context of the MNC, which is capable due to a borderless world, of operating where it confronts the most promising business conditions. He furthermore emphasises the individual capability of peoples who, can choose as well the most promising working environment in a borderless world:

TodayÆs global corporations are borderless because consumers have become less nationalistic. True global corporations serve the interest of cust

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c of the new era identified by Rafferty that is advantageous to investors and to the countries in which investments are made (simply because they become more appealing). Another example of globalization was described by Kroll (2002). This writer pointed out that the stock exchanges themselves are going global. Over the course of the next five to ten years, transactions on the stock exchanges are expected to be between companies and investors from different countries. As investors find it easier to directly buy and sell shares in businesses around the globe, it is likely that they will put more of their money into those companies promising the greatest reward, regardless of their location. What this means, says Kroll (2002), is that companies will need to market their financial stories on the global level in order to access the global investor, who will be able to maximize shareholder wealth in this manner. Kroll (2002) sees several forces driving stock market globalization. Institutional and retail investors want higher returns and wonÆt hesitate to head to other countries to obtain it. Countries that do not have a vibrant capital market are beginning to court investors in order to grow their economies. Regional
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Some common words found in the essay are:
Third World, Union EU, Similarly Kroll, According Edwards, Globalization Rafferty, Agreement NAFTA, Business Review, Michael Rafferty, World-Wide Web, Bretton Woods, rafferty 2000, hausler 2002, edwards 1999, kroll 2002, obstfeld 2000, globalization markets, sodaro 2004, ohmae 1990, financial markets, stock exchanges, harper harper coronel, harper coronel 2002, harvard business review, welford prescott 1996, barnes et al,
Approximate Word count = 3318
Approximate Pages = 13 (250 words per page)

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