Sp7 intro to international business

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Summary of the article

The article written by Theodore Levitt titled Globalization of Markets looks

into various factors which are globalization and multinational companies taking into fact a

very key factor known as technology. Technology to a certain point dictates how things work

in the lives of people. Technology has been helpful in aspects such as communication, travel,

production, and transport. Through this little aspect, people strive to find more improvement

in modernity. Levitt states that the coming up of global markets bears more benefits in com-

parison to multinational co-operations. Levitt discusses some few aspects in his idea of a

worldwide market. These aspects entail production of standardized of products which are

made available to the consumer at a low price, high quality and reliability, not forgetting how

adequately suitable they are. Technology makes it possible for a man to attain some specific

objectives and that is the mitigation of life's burden and expansion of free time and spending

power. On the other hand, we have Multinational corporations who undergo very high pro-

duction cost since they have to adapt to the consumer's taste, preferences and maybe some of

their practices. This results in various problems as it is believed that they affect some of the

companies activities as far as marketing is concerned, we also have other affected areas for

example distribution, promotions and many more. The Global market gives rise to opportuni-

ties. This would happen in the economy of scale as it is characterized by the division of labor

and the production is specialized. People and nations are then allowed to maximize their state

through trade. When we look at Global markets, they not only increase the sales neither do

they bring about a brand but they also keep the customer. This ensures as the customer feels

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that his or her needs are taken care of and feel like they matter hence maintaining their loyal-

ty. This loyalty cuts across all religious beliefs as the brand is accepted worldwide. (Cunning-

ham et al., 92)

The significance of Levitt's paper

Theodore Levitt's paper did have some significance in today's business world. Some

may disagree others may not but there some useful details which were found in his work. His

analytical view of how the business world functioned was useful and very much evident in

our current world. Theodore talks of a world whereby everything is run by one important fac-

tor, and that is technology. He speaks of a time whereby every single detail in business is dic-

tated by the type of technology we have. Companies do adhere to his works as he implies that

with the best technology come some benefits. These benefits might include faster communi-

cation, services being provided in time, increased reliability and many others. Managers and

scholars benefit from this information as they need it to learn how things run me the econom-

ic world. No one would want to come in blindly. Therefore, some insight on such dynamic

and critical changes like those which have to do with technology marketing and consumer's

needs is needed by scholars and managers. Levitt outlines different ways in which a company

can cope with competition, and that is regarding cost, leadership, and differentiation. This in

information comes in handy in the corporate world and though it might be difficult as differ-

ent countries have different corporate laws.

The validity of the article

The article truly is old, I mean 35 years was a long time ago, but its importance still

stands. Theodore recommends standardization of products which till now works and compa-

nies are using them. Technology might have altered the current condition, but it has not taken

the aspect in question out of the economic world. Technology has made standardization easier

to implement in any market globally. With the standardization of products comes a reduction

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(Last Name) 1 Student’s name Course Professor’s name Date Summary of the article The article written by Theodore Levitt titled Globalization of Markets looks into various factors which are globalization and multinational companies taking into fact a very key factor known as technology. Technology to a certain point dictates how things work in the lives of people. Technology has been helpful in aspects such as communication, travel, production, and transport. Through this little aspect, people strive to find more improvement in modernity. Levitt states that the coming up of global markets bears more benefits in comparison to multinational co-operations. Levitt discusses some few aspects in his idea of a worldwide market. These aspects entail production of standardized of products which are made available to the consumer at a low price, high quality and reliability, not forgetting how adequately suitable they are. Technology makes it possible for a man to attain some specific objectives and that is the mitigation of life's burden and expansion of free time and spending power. On the other hand, we have Multinational corporations who undergo very high production cost since they ha ...
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