GLOBAL MARKETING Essay Example | Topics and Well Written Essays - 1000 words

GLOBAL MARKETING - Essay Example A good example of a firm practicing internalization as a result of globalization is KFC Limited (Kentucky fried Chicken) which has opened eateries in Europe, Asia and Africa yet its home country is USA. Key drivers of globalization have been linked to internalization with regards to marketing in that they might have positive and negative effects on marketing. Some of the key drivers of globalization are as presented by Daniel Traca in his article(International Trade) are, lower transport and communication costs, development of international institutions and political decisions towards deregulation and liberation of trade and FDI(Foreign Direct Investment) regulations. Lower transport and communication costs have especially propelled marketing standards by firms. This has led to healthier marketing competition and reduced monopoly by some major firms. It has also widened their market base and resulted into increased revenues. Customer services and goods delivery has also improved due to this. Daniel Traca outlines that the development of international institutions such as the World Trade Organization (WTO) and regional trade agreements between continental blocks and countries has greatly lead to internalization benefits by major firms. Though some regulations and rules that are governed by WTO have added towards marketing internalization, some are restrictive and are not favourable to all participants. Regional trade agreements have also lead to better products and services by firms in these regions. This is as a result of favourable marketing conditions such as reduced taxes, large market sizes and setting up of Export Processing Zones that foster growth of trade and marketing. Political decisions towards deregulation and liberation of trade and FDI regulations have resulted into better marketing standards. This has enabled firms to directly market themselves globally by getting involved in community programs