What are the issues involved in the development of a global market?

Essay by BootieBloke December 2007

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Many nations now rely on the movement of raw materials and goods and have become inter-reliant. This reliance can be referred to as a global market. To fully appreciate the issues involved in the development of a global market we must first understand what is meant by the word globalisation. In this context it can be used to describe the spread, change and growth of economy, trade and people between states, which until now had been separated by land, sea or culture. A symptom of this 'globalisation' is evident in the 'global market'; this market is a platform for the export and import of trade. The aim of this essay is to highlight the issues involved in the development of a global market.

A requirement to sell goods or trade has always been evident. Sherrat et al. (2004, p. 55) state that 'there is archaeological evidence to suggest trade occurred even in the Stone Age…' This trade was organised by a market.

This market may take place locally or as more apparent today internationally; the global market. This is now not only limited to the movement of goods and raw materials it can also involve the migration of skills and businesses. Seabrook (2003) suggests that Information Technology (IT) or business processes from over fifty percent of the world's top 500 companies are outsourced to India. This movement of business is not the only example of this.

The appearance of multinational companies has changed the face of the global market; companies are no longer tied to a single country or indeed continent. With the potential for massive profits many companies now trade on a global scale. Stopford (1998, p. 16) identifies that the Mitsubishi Corporation had a total revenue in 1998 of $129 billion, equivalent to the value of all the...