Globalisation is the more or less simultaneous marketing
and sale of identical goods and services around the world. So widespread has the
phenomenon become over the past two decades that no one is surprised any more to
find Coca-Cola in rural Vietnam, Accenture in Tashkent and Nike shoes in
Nigeria. The statistic that perhaps best reflects the growth of globalisation is
the value of cross-border world trade expressed as a percentage of total global
GDP: it was around 15% in 1990, is some 20% today and is expected by McKinsey
& Company, a consulting firm, to rise to 30% by "2015. Use
of the word in this business context is alleged to go back at least as far as
1944, but its first very visible appearance was in the writings of Theodore
Levitt, a professor of marketing whose article published by Harvard Business
Review in 1983 was entitled "The G1obalisation of Markets". In it he
foresaw "the emergence of global markets for standardised products on a
previously unimagined scale of magnitude". In "Can We Sustain
Globalisation", a report published in 2007 by SustainAbility, a consulting
firm, the authors wrote: Frustratingly Levitt did not provide a compelling
definition of globalisation in his article — and the void has subsequently
encouraged a dizzying proliferation of competing definitions.
The report claims to have come across more than 5,000 of them. SustainAbility’s
favourite is one provided by two The Economist journalists.
G1obalisation, they wrote, "is the freer movement of goods, services, ideas and
people around the world". The concept was popularised by an
American journalist, Thomas Friedman, in his book "The World is Flat". Published
in 2005, it reached the top of several bestseller lists with its headline
message that the world is now just one big integrated market.
Globalisation has been encouraged by: the growing liberalisation of markets
around the world, giving western multinationals access to customers they never
thought they would reach; easy Internet access and cheap international
telecommunications, the most obvious manifestation of which is call centres in
India that are servicing customers and corporations in Europe and the United
States; the rapid growth of large developing countries such as China, India and
Brazil, and their growing demand not only for western consumer goods and
technologies but also for goods and services from other developing countries.
Trade between China and Africa, for instance, rose from $3 billion in 1995 to
over $32 billion in 2005. Companies have approached
globalisation in two distinct ways. On the one hand are those such as Gillette
and Heineken that have made little concession to local tastes and manufacture
their goods in a few centralised production facilities that follow strictly
uniform standards. "The product must be the same everywhere," wrote a Heineken
chairman recently. "To ensure quality, every 14 days our breweries send samples
to professional tasters in the Netherlands." On the other hand
are companies that tailor their products or services for each local market.
Among them are Japanese carmakers such as Toyota, which now has plants in
several countries producing for local markets, and Coca-Cola, which never tastes
quite the same from one country to the next. A former chief executive of
Coca-Cola admitted that the company had once upon a time changed its
globalisation strategy. "We used to be an American company with a large
international business," he said. "Now we’re a large international company with
a sizeable American business." Accenture is mentioned in the opening paragraph
A. to illustrate the world market has been globalised.
B. to show the worldwide prestige of Accenture.
C. to compare the globalisation of Vitenam, Tashkent and Nigeria.
D. to exemplify the backwardness of Tashkent.