2.

Market Analysis:

Globalization of market: "Market globalization" refers to the amalgamation of historically distinct and
separate national markets into a single giant global market. The way to do the international business
market is to fail trade barriers and understand consumer taste and preference by providing the same
fundamental things worldwide.

 Downward pressure on trade barriers: IKEA is a multinational corporation that designs and sells
furniture, appliances, and other home-related items easy to assemble. Through their online
page, website, and apps, IKEA breaks barriers to business around the globe. Their products are
also sold on Alibaba, Amazon, and various retail locations such as brick-and-mortar stores and e-
commerce sites. The current number of IKEA locations is 446 in 52 countries.

 https://en.wikipedia.org/wiki/List_of_countries_with_IKEA_stores

 Taste and preference: Taste and preferences are other significant factors in market
globalization. As the company is doing business in China, they have to remember their taste.
IKEA Group, a franchisee of Inter IKEA Systems BV, introduces its unique style and sales model in
China. IKEA China is a joint venture that belongs to IKEA Group and operates as an independent
entity. This project helped us test the market, identify local needs, and better understand our
position to gain a competitive advantage.

 Providing the same: Providing the same basics is vital. But, unfortunately, in some cases, they
do this to give the impression that what we sell globally is identical to what we sell locally.

Globalization of production: Globalization of production is defined as "the procurement of goods and

services from various locations worldwide. "Globalization is reshaping international relations. As cross-
border trade expands, national economies become more interconnected. In standard general models,
lower trade limitations or transportation costs rise exchange between producers and consumers.
Adoption of fair international trade agreements and free trade fairs supports globalization of production
activities. With the opportunity to take these good conditions, IKEA has set up multinational production
chains in various countries. In low-cost countries, they have invested heavily in manufacturing and
business operations. While most IKEA products are designed in Sweden, they are manufactured in
China. Still, as China's labor cost has risen, they have shifted to other developing countries like Vietnam,
Malaysia, Myanmar, and Eastern European countries like Romania and Poland.

 https://daxueconsulting.com/ikea-in-china/