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Strategic Importance of International Marketing
Last year’s international trade in merchandise exceeded US$10.5 trillion and worldtrade in services is estimated at around US$2.4 trillion. Whilst most of us cannotvisualize such mammoth amounts, it does serve to give some indication of the scaleof international trade today.Today the global marketplace consists of a population of 6.6 billion people, whichis expected to reach 10 billion by 2050 according to the latest projections preparedby the United Nations.Population growth and increased affluence together have helped create a
– teenagers now account for 30 per cent of the population globally.In many countries, more than half the population is pre-adult, creating one of the world’s biggest single markets, the youth market. Everywhere adolescents project worldwide cultural icons, Nike, Coke, Gap and Sony Walkman, as well as Sega,Nintendo and the Sony Play station. When ‘virtual reality’ is commonplace, theone-world youth culture market will exceed all others as a premier global marketsegment. Parochial, local and ethnic growth products may face difficult times.Older consumers are also increasingly non-national in their identity, if not in theirpersonal identity then from the perspective of the consumable fabric of their lives.They drive international cars, take foreign holidays, watch internationalprogrammes on television, and use international hardware and software.On the supply side, multinational and global corporations are increasing in sizeand embracing more global power. The top 500 companies in the world now account for 70 per cent of world trade and 80 per cent of international investment.To strategically position themselves for global competitiveness, companies areconsolidating through mergers, acquisitions and alliances to reach the scaleconsidered necessary to compete in the global arena.