1. The components of two of my meals include: Fried chicken, baked beans, potatoes, coffee, eggs, pasta, red wine, pepper, oil, onions, cheese, bread, carrots, and garlic.
Coffee is from Ivory coast, garlic is from Italy, the oil is from Nigeria, the Red wine is from Spain, the Cheese is from Australia, the baked beans is from the United States of America, likewise the Chicken and Potatoes are also from the United States of America, the Pasta is from Italy, the carrots from France. They were all purchased from various grocery stores in America; Farm fresh food and pharmacy, Super target stores and Walmart Supercenters.
The various food items ranging from the oil to the garlic to the chicken and the coffee have all originated from different continents all over the world. They are procured as raw food items from their natural habitats and exported to the United States of America or procured as raw materials, exported to America and processed to the semi-finished / finished food components they are. The food items have all undergone varying forms of transformation and also a chain of events before finally being consumed. Firstly, the items are procured from the farmers by the large food corporations who in turn process these items in their various sophisticated laboratories. The food items are processed, preserved and packaged for onward movement to the various departmental stores where eventual consumers will purchase them.
2 .What are some of the benefits of a global market and why? List at least 2 benefits, weighing any short-term and long-term impacts.
Increased competition: Globalisation will bring about increased competition among the consumers as this will lead to a wider range of services and goods to choose from. In the short term, consumers do not have to purchase only what the local market has to offer and also, companies have to come up with new innovative ideas in order to meet up with their competitors in the market.
Increased market size: One of the benefits of a global market is increased market size. Companies increase their customer base especially for specialized services and goods. Countries that need these products and services are able to obtain them, resulting in better financial standing for the companies and meeting the consumers needs.
Increased specialisation: Globalisation increases levels of specialisation among the company's. The companies use the best services and products from the best parts of the world at a highly reduced cost. Hence, more specialised products abound in the market and consumers in turn get better products at reduced prices.
Better product functions: This is also known as outsourcing. Companies and businesses save a huge sum of money by hiring outside workers, specialists and companies to do their work probably for less than what they pay locally. At the same time, opportunities abound for workers in other countries to seek for employment in their areas of specialty.
2. What are some of the impacts of this global market and why? Considering both short-term and long-term impacts, provide at least 2 negative impacts.
Loss of focus: Companies could lose focus of their local customers needs when they focus more on the needs of the customers in the outside market in a bid to save money. In the short-run, the moment the focus is no more on the local customer, the companies could produce just any products and services which are sub-standard. This may influence customer’s decisions to patronise outside companies in order to satisfy their needs; hence, there is capital flight from the local economy into other economies.
The global market can result in companies to churn out poor goods and services: A company hiring foreign employees does not imply that better goods and services will be produced. The foreign workers are termed expatriates and are less monitored. The company may end up losing huge sums of money due to poor products and services produced.
For local producers, they could face both operational and financial constraints. This is so because they have to develop better ways of delivering better goods and services at reduced prices. This benefits the consumers on the short run. In the long term, if the situation continues unabated, the local companies will shut down and they will inevitably lay off their workers.
4. Consider the phrase Think Globally, Act Locally. What does it mean to you?
The phrase ''Think Globally, Act Locally'' is also known as 'Glocalisation'. It implies that companies can do business on the international market but at the same time their active participation in the local market should not be jeopardised with their forays into the international market. This they can accomplish by using the global brand, while localising certain elements of the brand so as to suit a particular country.
5. Has your research on the global market changed the way you will choose goods in the future? Why or why not?
Yes it has. In the past, i always thought purchasing goods from overseas companies was the best. I have realised that this act is capable sending them out of business. Henceforth, I will patronise the local market for their products and services so that the money stays in the local economy.
(2012) L. Delaney Global Marketing Strategy: Four Benefits to a Global Marketing Strategy http://importexport.about.com/od/DevelopingSalesAndDistribution/a/Global-Marketing-Strategy.htm
(2012) Benefits and Challemges of a Global Market http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1201183330593&lang=eng