GLOBALIZATION OF MARKETS

A NUMBER OF BROAD FORCES HAVE LED TO GROWING GLOBALIZATION OF MARKETS, THESE INCLUDE:

1. Growing similarity of countries:  Because of growing commonality of  infrastructure, distribution channels, and marketing approaches, more and more products and brands are available everywhere.  Similar buyer needs thus manifest themselves in different countries.  Large retail chains, television advertising and credit cards are just a few examples of once-isolated phenomena that are rapidly becoming universal.
2. Falling tariff barriers - Successive rounds of bilateral and multilateral agreements have lowered tariffs markedly since World War II.  At the same time, regional economic agreements, such as the European Community (EC), have facilitated trade relations.
3. Strategic role of technology - Technology is not only reshaping industries but contributing toward market homogenization.  For example, electronic innovations have permitted the development of more compact, lighter products that are less costly to ship.  Transportation costs themselves have fallen with the use of containerization and larger-capacity ships. Increasing ease of communication and data transfer make it feasible to link operations in different contries.  At the same time, technology leads to an easy flow of information among buyers, making them aware of new and quality products and thus creating demand for them.

Sorenson and Wiechmann, "How Multinationals View Marketing Standardization"