Question

Evaluate the influences of globalization on trade sales. Consider the effects of both vendors and end-users.

Answer 1

In globalization, the sales strategy primarily focuses on raising the firm's profitability by reaping the reductions in cost that come from economies of scale. It involves internationalization with standardized goods with the standardized marketing globally and processes of production that aims to standardize the end-users requirements. Production is increasingly specialised and develops deeper relationships among markets across borders enable and encourage vendors and consumers to reap the gains of economies of scale. Due to globalisation the vendors face greater competition from foreign firms which reduces monopoly gains and incentivize businesses to seek cost-reducing improvements and innovations in what they sell these results to an improvement in dynamic efficiency. However the vendors in the developing nations generally struggle to compete with developed nations thus it is argued free trade providing gains to developed countries more. The effect of globalization for the end-users have been an increase in variety of product at lower prices and improved quality of products. However the global competitiveness contributes to increase in the pollution and global warming. Threats of land degradation, deforestation, irreversible damage to ecosystems, and loss of bio-diversity and the danger of a permanent shortage of water are affecting millions of the majority vulnerable people