Global Marketing MKT 656

GLOBAL MARKETING (MKT656)

GLOBALIZATION SEMINAR REPORT 1ST OCTOBER 2018

WRITTEN BY

DALIA SABRINA ABDUL RASID 201658963 BM2405A

WRITTERN FOR

MADAM NUR SYUHADA BINTI MUHAMMAD

(17TH OCTOBER 2018)

Global Marketing MKT 656

OBJECTIVES & PURPOSE

It was an honour to have a chance on participating on a short but very

enlightening course with Associate Professor Dr Asmat Nizam Abdul Talib from
Othman Yeop Abdullah Graduate School of Business University Utara Malaysia
regarding a very interesting topic of globalization. As a marketing student under
management of business administrative having this opportunity of exposure from an
educational associate of international business is a chance of a lifetime. Early contact
of a vital topic like this for a business student is an essential for me personally to grab
hold the concept of business in this modern day where communication and
opportunities between every country is considered limitless.

Ground breaking influences made business activities between countries a

reality and boundless. As a future decision maker, Associate Professor Dr Asmat
Nizam Abdul Talib has opened my eyes on the various means of global business
interaction that can be made. How prospects can be gained by people or a community
when there is a relationship arise between business associates as he said a multiplier
effect. It is a win-win situation for a country to establish international relationship in a
business prospect as declining barriers of trade been formed.

However, consequences of political affairs between countries would embark on

cause and effects that a whole nation would take into action. From this issue Dr Asmat
have touched on the war trade between the United States and China both which are
big models in the global economy have urged on the possible and growing outcome
for each country’s global trade. This subject have took an impression on me which
objectifies the possibilities and impacts of globalization. To create a deeper
understanding of the pattern and trends of this phenomenon that would interrelate how
business relationship is subjective towards a situation that would take effect on a
global scale.
Global Marketing MKT 656

BRIEF ON THE TOPIC OF THE SEMINAR

Associate Professor Dr Asmat Nizam Abdul Talib from Othman Yeop Abdullah
Graduate School of Business University Utara Malaysia have briefly but fascinated his
audience with his selected topic on globalization. The speaker of the day is an
associate professor of international business and international marketing. His teaching
focuses on international business and international marketing strategy with an
emphasis on building the organization and capabilities for export customer focus. Dr.
Asmat describes global business interactions are interdependent and connected
towards each other like a cobweb. This is due to the integrated global economic
system with lower barriers on trade investments between countries and the
establishment of international institutions that facilitate such activities.

Globalization and international business as business terms are often used

synonymously in casual conversation. However, when these concepts are applied
specifically to the ways in which companies operate when moving beyond domestic
borders, they are quite distinct. Globalization at the business level relates to
development of a worldwide business approach that is integrated. A domestic
company chooses to set up or operate its business around the world, and does so with
a fairly universal approach. Operations, marketing, advertising, sales and service are
all generally consistent from one country to the next. International business strategy
treat each country as a unique marketplace and adjust business operations,
marketing, advertising, sales, service and other business functions to more
appropriately fit each country.

Thanks to advancements in technology and communication, the Internet,

emergence of new developing and developed countries and more open attitudes to
free trade, the world has become a much more global economy in the late-20th and
early-21st centuries. Opportunities to flourish the economy of a company to expand
sales perusing international sales, to acquire resources for lower cost and better
products including to diversify or reduce risk towards international operations gaining
what is most important which is competitive advantages against competitors. Creating
globalized markets and production may be the ideal output to a more low cost
approach for a company to establish.
Global Marketing MKT 656

There were still many unresolved issues surrounding the need to provide the
twin aims of international liquidity for ease of international trade coupled with the
stability in exchange rates that was needed for predictability in results of trade.
Globalization have created the need of regulating, managing and policy makers to
govern the global marketplace. The outcome of Breton Woods was the International
Monetary System: this was an institutional arrangement amongst banks that belong to
the International Monetary Fund (IMF). A number of leading governments agreed that
international trade would be enhanced by promoting a system of fixed exchange rates
between their currencies: the Breton Woods Agreement. The same meeting also
resulted in the formation of the World Bank. Some countries have grouped their
economies together into trade blocks. The essence of such a group is that they operate
a common trade regulations on goods and services from countries entering the block.
In addition, the nations within the block usually operate the same tariff between
members of the block often applying zero tariff.

Other factors compromising globalization includes the growth of consumer

pressure on global products that have penetrated into the market. Due to innovations
in transportation and communications technology, consumers are well-informed about
and often able to access foreign products. Availability on information makes product
acceptance and awareness increasingly high. Thus competitors all around the world
over have been forced to respond to consumers’ demand for increasingly higher
quality and more cost-competitive offerings as consumers are able to negotiate and
differentiate easily. Moreover, is the changes of political and governmental policies
that promotes globalization made a good example is the European Union. Two of the
original core objectives of the European Economic Community were the development
of a common market. Member states of 19 have joined a monetary union known as
the Eurozone creating a single market that involves free circulation of goods, capital,
people, and services within the EU-members and the customs union involves the
application of a common external tariff on all goods entering the market resulting
estimated second largest net wealth in the world.
Global Marketing MKT 656

BENEFITS OF SEMINAR

As a marketing student and a future decision maker, it was an eye opener to

be involved in this seminar conducted by Professor Dr Asmat Nizam Abdul Talib an
educational associate from Othman Yeop Abdullah Graduate School of Business
University Utara Malaysia. Such passion and dedication towards his profession was
seen when he presented that day even at a very short amount of time had really
educated me on the possibilities and consequences of international business and
globalization in a business scale. A great exposure towards business students on
latest economic issues arise when Dr Asmat brought it up such as the war trade
between the United States and China. Both key players in the global economy were
defending each priorities but leading to events that would affect every chain country
related to them. As the trade relationship in a global view is integrated and intertwined
among countries if one pulls a strand the whole net might be defected. However, it is
an ever changing cycle for decision makers to apply strategic options to achieve
intended goals of a company.

Emphasizing globalization in an economic scale would create a strategy for a

company that is focusing on a global market and production. To realise the extension
of profit and sales with the conduct of globalization. A better understanding towards
trade deficit was generated by Dr Asmat on pros and cons of the situation. Trade deficit
exists when a country spends more money annually on imports than it receives from
its exports. Currently, as stated by Dr Asmat, the United States owns the largest trade
deficit. Meanwhile, other countries export more than they import and enjoy trade
surpluses. China, Russia and Japan all have large surpluses. Alternatively, a deficit
means that a country’s consumers are wealthy enough to purchase more goods than
the country produces. When production cannot meet demand, imports from other
nations increase. An increase in imported goods from other countries decreases the
price of consumer goods in the nation as foreign competition increases. The lower
prices help to reduce the threat of inflation in the local economy. A fast-growing
economy might import more as it expands to allow its residents to consume more than
the country can produce. Therefore, a trade deficit could indicate a growing economy
and reduces the coming of inflation.
Global Marketing MKT 656

Realization of the global business activities Dr Asmat also touched on the free
trade and policy instruments induced by the government in intention to not restrict what
its citizens can buy from another country or what they can sell to another country.
While many nations are committed to free trade, may lead to intervening international
trade to protect the interests of politically important groups. Free trade is a policy to
eliminate discrimination against imports and exports. Buyers and sellers from different
economies may voluntarily trade without a government applying tariffs, quotas,
subsidies or prohibitions on goods and services.