Embracing Globalization: A Study of Factors Shaping Consumer Acceptance of Imported Products

Free trade as embraced by globalization is altering the world\u27s economies at an unprecedented pace. Yet, this inertia may be stymied by consumers who feel threatened by the changes in their domestic economies and by imported products. This study examines factors shaping consumer acceptance of imported products. With samples derived from Singapore and New Zealand, we explore the impact of consumer ethnocentrism, domestic product quality, the necessity of a product, and cultural openness on acceptance of imports. The findings reveal that only consumer ethnocentrism has a strong association with opposition to imports. The other factors show some impact but in a more muted sense. Implications are presented

Globalization Report 2016: Who Benefits Most from Globalization? Bertelsmann Policy Brief #2018/02

The globalization report appears regularly and sets an authoritative standard for the comprehensive analysis of current globalization issues and global economic development. The 2016 globalization report comes in two parts. Building on the previous report, the first part focuses on the question of to what extent different countries have benefited from globalization in the past and to which degree this is possible in the future. The second part analyses the export performance and the development of the international competitiveness of 42 globally important economies. The first part of the investigation creates a globalization index which takes into account the economic, political and social aspects of globalization. Subsequently, the index data are used, together with a regression analysis, to quantify and compare the impacts on growth caused by globalization in the various countries. Then the country is identified which has achieved the most growth as a result of globalization

Customer Enquiry Management in a Global Competitive Context: A Comparative Multi-Case Study Analysis

Business-to-Business (B2B) relationships, such as between a manufacturer and a customer, are increasingly important during the Customer Enquiry Management (CEM) process, particularly so for non-Make-To-Stock (non-MTS) companies operating in industrial markets. Few empirical studies have explored the CEM practices adopted by firms in practice. A study of the Italian capital goods sector by Zorzini et al. (2007) is a recent exception. Moreover, most studies have approached CEM from a cross-department integrated perspective but in the digital economy, and with globalization, outsourcing and extended supply chains, CEM needs to be approached from a broader supply chain-oriented perspective, incorporating B2B exchanges. This paper builds on the study by Zorzini et al. (2007) by conducting multi-case study research with seven UK-based companies in the capital goods sector, including three sales and support companies with offshore manufacturing. By adopting a cross-national research perspective, it assesses whether the proposed theory applies to other capital goods firms outside Italy. By also adopting a supply chain perspective of CEM it investigates current industry practice in B2B markets and explores whether cross-functional coordination and formalization issues can be extended into a global context. Evidence from the UK generally supports prior theory, confirming links between high levels of coordination, formalization of the CEM process and improved performance. Some refinements are proposed, for example, in order to make the theory suitable for a global context. The characteristics of a supply chain are important factors that affect CEM. This research has managerial implications for improving the CEM process in non-Make-To-Stock (non-MTS) capital goods companies from both an intra and an inter-organisational (B2B) perspective. Coordination with partners along the supply chain is needed at the enquiry stage and constraints linked to global customers should be considered when structuring the

Trade booms, trade busts and trade costs

What has driven trade booms and trade busts in the past and present? We derive a micro-founded measure of trade frictions from leading trade theories and use it to gauge the importance of bilateral trade costs in determining international trade flows. We construct a new balanced sample of bilateral trade flows for 130 country pairs across the Americas, Asia, Europe, and Oceania for the period from 1870 to 2000 and demonstrate an overriding role for declining trade costs in the pre-World War I trade boom. In contrast, for the post-World War II trade boom we identify changes in output as the dominant force. Finally, the entirety of the interwar trade bust is explained by increases in trade costs

The Global Networked Value Circle: A new model for best-in-class manufacturing

As companies face deflation, slowing production and declining prices, they will need to assess their entire value chain as they look for ways to keep costs low and improve efficiencies while continuing to innovate. To help address this challenge, this report reflects fresh research undertaken by Capgemini in collaboration with the University of Edinburgh into the ?Best-in-Class Global Manufacturing Value Chain?

How Offshore Outsourcing is Perceived: Why Do Some Consumers Feel More Threatened?

As globalization intensifies, multinational companies are not only compelled to expand their operations, but are also facing greater pressure to enhance productivity and concomitant return on investment (ROI). One way to achieve cost efficiencies is by offshoring selected business operations to overseas firms. Such offshoring, however, has generated public concern and, in some cases, outrage. Angst against offshoring is based on many perceptions, including perceived job losses and damage to domestic industries. In the wake of this threat, multinational firms in Europe and North America confront a public relations problem in justifying their offshoring activities. Yet, no systematic study has investigated why some consumers feel threatened by offshoring while others do not. Our study addresses this concern by using Americans as a sample. We show that economic threat and consumer ethnocentrism have a negative impact on offshoring attitudes while perceived quality of services delivered by offshore firms has a positive effect. Implications are discussed

Can Brazilian Firms Survive the Chinese Challenge: Effects of Globalization on Markets, Strategies, and Performance

Purpose – The purpose of this paper is to apply the structure-conduct-performance theory and the strategic fit concept to examine the effects of globalization on markets, strategies, and performance of business-to-consumer firms in Brazil. Design/methodology/approach – The paper takes a qualitative approach to answer the research questions. Top decision makers such as president, chief executive officer, chairman of the board, vice president, and director of the companies were interviewed. The elite approach to in-depth interviewing was followed to obtain reliable information from the decision makers. Findings – Findings indicate that globalization and especially the entry of Chinese firms significantly changed market contexts in Brazil. Brazilian executives responded to changes in market contexts by shifting from production to customer orientation, building brand equity, developing new products, and differentiating offerings. Overall, marketing performance of Brazilian firms was positive, but profitability suffered. Originality/value – The study contributes to the literature by showing that globalization has changed market contexts in Brazil by developing a new form of competition in which firms from emerging economies are now competing against each other. Findings from this study can provide useful theoretical and strategic insights into the behavior and performance of firms in other emerging markets

Economic Globalization and Caribbean Economies: Competitive Developments, Strategic Response, and Performance

This study examines the effects of economic globalization on competitive situations of local firms in a small economy, the strategic responses of these firms to the competitive developments, and marketing and financial performance outcomes of these strategies. Findings indicate both beneficial and deleterious effects of economic globalization on domestic competitive situations. Findings also indicate variations in strategic responses and performance outcomes of local firms. Implications are presented along with recommendations for future research

Globalization or Localization? A longitudinal study of successful American and Chinese online store websites

This paper reports the results of a longitudinal study of 2562 images on the homepages of successful American and Chinese online store websites,with the goal of determining whether cultural factors impact their visual presentation and evolution. Descriptive and statistical content analyses reveal that the U.S. and Chinese online store sites showed significant cross-national image differences from their inception; moreover, the Chinese sites diverged further from the U.S. sites over time, strengthening their own cultural identity and suggesting a trend towards localization in a diverse and dynamic world market. These findings support the view that although English-speaking Western culture is widespread in today’s Information Age, other cultures are not necessarily undermined

Globalization, Expectations Model of Economic Nationalism, and Consumer Behavior

Purpose – The goals of the paper are to propose, measure, and empirically test the expectations model of economic nationalism. The model posits that economic nationalism is reflected in people’s expectations of their government, domestic firms, and the general public, in terms of restricting the activities of foreign firms. Design/methodology/approach – A confirmatory factor analysis is conducted to test the model, using the LISREL procedure. Findings – Results show acceptable fit for the proposed model. Reliability of each of the three dimensions of economic nationalism is in the acceptable range. A nomological validity test showed that economic nationalism is related to other constructs not included in the model. Research limitations/implications – A limitation of the model is that it is based on a single sample. Future studies can test the generalizability of model with samples from different countries. Practical implications – The implication of the study is that increasing globalization might lead to an increase in economic nationalism. Business executives, therefore, need to focus not only on the benefits that they will derive from entering a country, but also the benefits they will deliver to the domestic economy by entering the country. Originality/value – The paper presents an expectations model of economic nationalism. The model is based on the premise that people’s expectations of their government, domestic businesses, and the general public in terms of their role in restricting the activities of foreign firms are reflective of economic nationalism. The more people expect of these three players the more economically nationalistic they will be. The value of the paper is to researchers in international business and global marketing and to business executives involved in managing global operations