Question

Globalization has been a powerful driving force, which has brought convergence in the taste and preferences of consumers around the world. Despite this fact, operating in international market is much more complex than marketing domestically.

Is True or False? Briefly explain your answer.

Answer 1

This is true since trade on a global level is not completely straightforward but is subject to a lot of factors, especially political factors. For example, political instability or a shift in the economic policy of another country could be either a boon or a bane. For example, take a look at America's trade war with China where tariffs were imposed by each country on the other due to political differences. This caused a hindrance in world trade. Also, observe the OPEC oil crisis of the 1970s where OPEC countries artificially created low supply to drive up the prices for oil, which led to problems. Another similar example is the 2008 US financial crisis which had a pan-global impact, I.e it affected countries other than America.

The case of India opening up its economy in 1991 due to a shift in political and economic approach was a good thing but it also is an indicator of how complex it can be to navigate the global market when it so highly dependant upon factors other than just the exchange of goods. Therefore, to operate in the international market, one must have more than just sound economic knowledge, but also a very good understanding of world politics and international relations.