Impact of Globalization Essay

It has gradu entirelyy evolved from the seventies after the advent of different forms of lofty speed transportation and communication to the advance of information technologies around the millennium, to make a single unified community where all the major(ip) sources of various social conflicts harbour disappe ard (Scheuerman, 2010 and World Regional Geography, 2009). there ar s of all timeal ways of defining globalization. As defined by Dr. Nayef R. F. Al-Rodhan (2006), Globalization is a process that encompasses the ca engrosss, course, and consequences of transnational and transcultural integration of human and non-human activities.The cause of Globalization are manifold. It influences industrial sector, financial sector, labour markets and consumers of a extra country. On one fall it gives rise to more jobs and industries, however, on the other hand, countries are becoming dependant on the other country for a detail product/raw material. Additionally, because of outsour cing jobs from certain scrimping are being transferred to the growing economy, which has a negative effect on the developed economy and positive on the developing economy. 2. 2 Consumer package Goods and GlobalizationConsumer Packaged Goods (CPG) are sold at relatively low price and are non kindless goods like grocery items, soft drinks etc. Large CPG manufacturer has an emolument of well-set brands, greater geographical coverage and having major retailers. CPG assiduity is affected by the change in fashion, fads and consumer preferences, which in turn effects the purchasing decision of a consumer. Therefore, I believe that in the truehearted and ever changing world of Consumer Packaged Goods (CPG) it is arbitrary to discuss the effects of globalization on this industry.Additionally, there is immense pressure and concentrated competition between the manufacturers globally to sue the demand of consumers. 2. 0 Impact of Globalization on CPG Industry 3. 3 cost and Benefi ts of Globalization on CPG Industry There are diverse ways in which globalization impinge on CPG industry. any(prenominal) are beneficial for the industry and few arent. The good side of globalization is explained as follows a. Profits from emerging markets Procter and Gamble in year 2006, showed a total gross sales of US $ 68 billion, out of which US $ 21 billion was from emerging markets.Additionally, from 1992 to 2006, globalization has boosted the American economy by US $ one trillion in stark(a) Domestic Product (Veiders, 9th July 2007, Supermarket upstarts). b. Consumers advantage The consumer gets the advantage of choosing from wide variety of goods, in addition to the comparative advantage. Additionally, the offshore markets are producing goods at a price which is pooh-pooh than the domestic fruit of a particular country. Though this is an advantage to the consumer, this could hamper production and associated profits in close to countries (Oline Thompson, 2006, CPG M anufacturing) c. unlike detonator access Foreign capital access is the main driving tie of globalization. This in turn increases the investment forcefulness of a particular country to develop better produce economically (13th February, 1996, WTO give-and-take (press releases). The other side of globalization illustrates some problems faced by CPG Industry a. ethnic disparity A product that expertness be a necessity in one country might non be even known or used in the other, which would prevail a negative effect on the CPG industry patch trying to encourage its use in a particular country.To touch on a salient example, Brazilians usually usurpt have breakfast, because they sleep after-hours at night and consumers in china for breakfast eat hot, soft and savoury, while the North Americans love cold, crunchy and sweet breakfast. This was the diversion analyzed by Kellogg Company in 2007 (Veiders, 9th July 2007, Supermarket news). b. Global Competition In this fast paced environment any CPG company have to constantly innovate and differentiate their product, to put forward or increase their market share. every(prenominal) year large number of new products are being roduced and capture the elude space of the existing labels and compete with them.