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MODULE 02
Globalization in the Blending of Cultures GLOBALIZATION AS INTERNATIONALIZATION AND
New cultures are being transmitted when LIBERALIZATION
more people are traveling or exchanging goods. It
is also affected by open communication by internet,
especially intermarriages coming from dating site What is Internationalization?
meet ups.
Standard /Process of globalization.
Here are some examples: Internationalization before to be part of
While world economies benefit from globalization.
globalization, the spread of new cultures is also
affected. Christian missionaries have Globalization is an economic process that
significantly contributed to the globalization of aims to integrate countries' economies globally.
the world, fostering the spread of new cultures Internalization acts the same as Globalization,
and promoting spirituality among people improvising the local economy, leading to its
worldwide. growth and expansion of businesses across other
Migrants are transforming the world through countries.
travel, escaping oppression and securing better
Internationalization is related to a firm's Internationalization gets affected by cultural
movement overseas, artists performing overseas, tastes and preferences, local traditions, etc
Filipinos working overseas. At the same time,
Globalization is the rapidly growing integration of The prominent example of Globalization is the
communication, finance, culture, and political Elimination of Visa Obligations, removing tariff
ideology. Although, Internationalization is the and non-tariff trade barriers, liberalizing
process that results in Globalization as firm investment-related obligations, etc In contrast,
movements could be the cause of Globalization. inter-nationalization is sourcing, producing, or
selling materials or delivering services from
There is a substantial difference between one or more countries, setting up branches
Globalization and Internationalization. and subsidiaries in other countries, etc.
Internationalization is to perform at the
international standards with our domestic labor, Globalization is an economic process as it aims
natural resources to compete for the global market. to integrate the economies.
It is an effort with own nation's national labor, Internationalization is an improvisation process
capital, and resources by operating in domestic and as it will expand the business across the
an international market. nations.
Globalization is to integrate the economies
with integrity and unity globally to use other Organizations like International Monetary
nations' labor, capital, and resources to reach the Fund (IMF), World Bank, World Trade
best results. Organization (WTO), etc., observe and work to
implement Globalization. At the same time,
Institutions like the European Union (EU), Asia
What are the differences between Globalization Pacific Economic Cooperation (APEC), North
and Internationalization? Atlantic Free Trade Agreement NAFTA, etc.,
boosts Internationalization
1. Economic Globalization
GLOBALIZATION AS WESTERNIZATION The concept of Globalization as a whole is
mainly economic. Globalization has emerged and
developed largely as an economic concept and
system. Economic Globalization is the financial
Westernization is a cultural transformation connection of a country with the global economic
whereby other societies adopt western ideas. system. Globalization in the economic field is free
Usually, it is associated with capitalism, freedom of economic adoption. This removes the regulatory
thought and expression, and more and more with rules imposed on a country's economic affairs and
American Cultural entertainment and lifestyles. exposes the domestic economy to the world.
At the same time, Globalization, on the other
hand, refers to closer integration of people in both Features of Economic Globalization
cultures and more practical concerns like transport
Prominent economist Peter Drucker in his New
and products.
Realities, discusses the economic features of
Globalization. They are:
5. Cultural Globalization
2. Political Globalization The process of cultural globalization and is
Political ideology is often referred to as one also sometimes called McDonaldization. Cultural
of the characteristics of Globalization That is, the globalization is how a world-class of goods, ideas,
expression of Globalization also occurs in political and Information is produced in one part of the
ideology. (Law Of Different Countries) world.
4. Military globalization
The process which embodies the growing
extensity and intensity of military relations among
the political units of the world system. It reflects
both the expanding network of worldwide military
ties and relations, as well as the impact of key
military technological Innovations (from
steamships to satellites), which over time, have
MODULE 06 Marketing agencies combine to form a union
GLOBAL ECONOMY AND MARKET INTEGRATION to reduce their effective number and actual
competition in the market
It is advantageous for the members who join
the group.
Market Integration - refers to how easily two or
more markets can trade with each other. Foreign
trade helps the Integration of markets because it Effects of Horizontal Integration
reduces barriers to trade and increases fluidity Buying out a competitor in a time-bound way
between markets. to reduce competition
Gaining a larger share of the market and
Reasons For Market Integration: higher profits
To remove transaction costs Attaining economies of scale. Specializing in
Foster competition the trade.
Provide better signals for optimal generation
and consumption decisions. Advantages of Horizontal Integration
Improve the security of supply Lower costs.
Higher efficiency
Market integration occurs when prices among Increased differentiation
different locations or related goods follow similar Increased market power
patterns over a long period. Reduced competition.
Groups of goods often move proportionally to Access to new markets.
each other. When this relation is apparent among Economies of scale.
different markets, it is said that the markets are
Economics of scope
integrated. Thus, market integration is an indicator
that explains how much different markets are International trade.
related to each other.
What Is Market Integration, For Example? 2. Vertical Integration. This occurs when a firm
1. Establish wholesaling facilities by food retailers performs more than one activity in the sequence of
and set up another plant by a milk processor the marketing process.
2 Facebook buyout of Instagram and WhatsApp to It links two or more functions in the marketing
have a bigger market for Image sharing process within a single firm or under single
ownership.
This type of Integration makes it possible to
exercise control over the product's quality and
Types Of Market Integration quantity from the beginning of the production
process until the product is ready for the
consumer
Horizontal Integration It reduces the number of mediators in the
Vertical Integration: Forward, Backward and marketing channel
Balanced Vertical Integration
Conglomeration 3. Forward Integration Suppose a firm assumes
another function of marketing that is closer to the
consumption function. In that case, it is a case of
forwarding integration. (flow of product,
1. Horizontal Integration. This occurs when a firm
production to consumer)
or agency gains control of other firms or agencies
performing similar marketing functions at the same
level in the marketing sequence.
4. Backward Integration. This involves ownership or What Are The Effects Of Market Integration?
a combination of sources of supply. (processing
firm assumes the function of assembling or Both producers and consumers gained, but
purchasing the product from the villages | supplier welfare gains were inversely related to the size of
to the business or manufacturing) the country and positively to the level of openness
to trade. We infer that welfare gains from
international market integration were equivalent to
5. Balanced Vertical Integration The third type of substantial shares of economic growth in the long
vertical Integration combines the backward and the 19th century.
forward vertical Integration.
Effects of Conglomeration
Risk reduction through diversification
Acquisition of financial leverage
Empire-building urge.