Topic > Globalization and SC Johnson - 1537

Globalization is the shift towards a more integrated and interdependent world economy (Hill, 2005). Globalization encompasses several areas, including the globalization of markets and production. Market globalization is the merging of different markets from different nations into one large global market. Cross-border trade has made it easier to sell internationally. Companies can sell standardized products efficiently and effectively around the world, thus helping to build a global market. Globalization of production refers to the sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital) (Hill, 2005). By doing this, companies hope to reduce costs, improve product quality and increase distribution. This would allow companies to compete with other companies globally. There are many business theories that support the idea of ​​globalization. The theory of absolute advantage states that all countries differ in their ability to produce goods efficiently. The theory suggests that each country should specialize in producing products in areas where it has a distinct advantage over other countries. And that same country would have to import goods in the areas where they are weakest. Another theory is the theory of comparative advantage. This suggests that unrestricted free trade between countries leads to increased global competition and production. This is truly in line with globalization. Finally, Heckscher-Ohlin theory believes that the pattern of international trade is determined by differences between countries. He believes that...... half of the paper......s. Products in Mexico must have a much lower purchase cost for the general public than in the United States. This is where market share and sales volume come into play. The South American Community of Nations (CSN) is another important region to turn to for SCJ. SCJ currently operates in Brazil, Argentina and Venezuela. But SCJ's market share in these and other South American countries is low, and the opportunities are endless. Since SCJ already operates in the region, incremental growth is a cost-effective way to increase profits. It is necessary to develop new products and new distribution channels starting from current product lines and trends. This can lead to large incremental growth in the region with minimal cost to the company. Analyzing other regions where SCJ is not currently present could be more expensive than creating brands already on the market.