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Nadia Ulya Mohon Tunggu... Mahasiswa - Universitas Muhammadiyah Malang

saya mahasiswa aktif Universitas Muhammadiyah Malang angkatan tahun 2020

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Ilmu Sosbud

Introduction To The Global Market

25 Juni 2023   20:51 Diperbarui: 25 Juni 2023   21:06 275
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2.Second Stage: Multinational and Polycentric Orientation

Multinational companies are companies that involve more than one country in running their business(Dunning & Lundan, 2008)At this stage managers begin to realize that other countries also have their own uniqueness. Polycentric orientation is an assumption that other countries where the company does business have its own differences and uniqueness from the country of origin(Green & Keegan, 2020b)In the process of decision making and management processes are adapted to the geography of the company running its business(Sihite, 2016)

3.Third Stage: Global and Geocentric Orientation
Global Companies are companies that make the global region a market(Sihite, 2016)At this stage the manager assumes that the whole world is a potential market, therefore a manager must have an integrated strategy(Green & Keegan, 2020b). Global orientation can be said to be Geocentric because it considers that world markets have similarities and differences so that a global strategy will be created. At this stage is the stage where the company has a very high complexity because of the differences and similarities.

F. The Driving Forces And Restraining Forces Affecting Today's Global Integration.
The many differences and some similarities with other countries in conducting international business make a manager must be precise in choosing a strategy. It is from these differences that many countries carry out a strategy by working with other countries to complement each other. There are also many other factors which, instead of strengthening global integration, also weaken global integration.
Driving Force

1)Multilateral Trade Agreement
One example of multilateral trade is the WTO. The World Trade Organization (WTO) is the only body that regulates and oversees various issues or trading activities on world markets (PRINCIPLES). With the existence of the WTO, it will certainly strengthen integration because there are rules and bodies that protect world trade activities so that each country does not hesitate to carry out cooperation.

)Development of Technology and Information Systems

ith less than 48 hours, one can circumnavigate the world by using a jet boat(Green & Keegan, 2020)This indicates that technological developments have made human activities easier, from transportation to communication.
3)Global Strategy
Global strategy is a design that has the goal of creating a competitive advantage in the global market. By having a global strategy the company will be able to compete well.(Green & Keegan, 2020).

Restraining Strength

1)National Control
Each country has control over what happens to its country(Green & Keegan, 2020a). A rule made by a country sometimes hinders and complicates the process of company activities to do international business.
2)Rejection Against Globalization
Some individuals and a country view globalization as a threat to themselves, so they will close themselves off from the outside world. People with these assumptions are often called Globaphobia(Green & Keegan, 2020).

 
Conclusion

Globalization is now familiar to every individual, where globalization triggers companies to expand their business in the world market. With a wider market, of course, income will also increase, but to achieve success in the world market one must be able to overcome various obstacles both domestically and globally. One way that can be done to expand the market is by analyzing the market matrix which contains how the company penetrates the market, expands the market, expands the product, and diversifies the product. This matrix will have an impact on the company to have a competitive advantage.

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