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Impact of Globalisation on International sales and marketing

Kirjoittanut: Jignaben Patel - tiimistä Kaaos.

Esseen tyyppi: Akateeminen essee / 3 esseepistettä.

Marketing and Globalization
Aurélia Durand
Esseen arvioitu lukuaika on 7 minuuttia.

Impact of Globalisation on International sales and marketing

Jignaben Patel and Oshadi M.


With the growing interdependence of the nations and economies on each other,

globalisation is at its highest peak than ever. Globalisation is the growing integration and

interdependence on each other but on a worldwide scale. Companies often extend their

organisations to attract more customers and reduce production costs. Globalisation was the

first crucial period starting from the 1870s after trade and finance became a major trend

(Wikipedia, First Globalisation). Multinational Corporations have emerged from European

expenditures around the world from the early 15th century such as East India Company,

Dutch East India Company, and Hudson’s Bay Company (Wikipedia, Timeline on European

exploration). While operating in other nations, companies need to gain the citizens’ trust,

respect their cultural practices, and offer convenient services. In today’s age of globalisation,

it can force multinational companies to make their marketing and sales tactics culturally

friendly, and trustworthy.


Globalisation has facilitated business opportunities and benefits companies in

competition with other rival companies and production efficiency. Global expansion of a

company gives exposure to more consumers and opens up the possibilities for new products

and services. For instance, McDonald’s Corporation is one of the largest food chains in the

world offering a menu in relevance to local preferences and customs of the nation. By doing

so, McDonald’s has one of the largest international sales growth with customers from diverse

backgrounds and nationalities. Not only McDonald’s, but other popular companies such as

Apple Inclusive, Coca-Cola Company, and Amazon are popular just because of their global

expansion and the right way of marketing and adapting.


Globalisation and International Sales


Globalisation has made it easier for businesses to access a wide range of resources

and reach the target consumers in any part of the world. Many companies often manufacture

goods in a nation with cheap labour and sell the product in another nation which has most of

its consumers. This saves them the cost of resources, labour and production. Due to

globalisation, people often tend to select a foreign company if it provides them with good

services and satisfies their demands. The more a company spreads around the world, the less

it depends on a singular nation. For instance, a change in a government policy might not act

in favour of the company and the business could be forced to start again or shut down

entirely. Multinational companies do not let a singular nation, its regulations or its economy

have control over them. Companies in other nations bring foreign income, investments and

projects to the country. It also provides labour and employment opportunities to the country’s

citizens. Overall, when multinational companies expand their territories, they also contribute

to the development of the companies it is a part of. Collaborating with other companies also

helps in creating a strong image of the company for the consumers


However, globalisation also forces companies to be very cautious of the government

policies in all the nations the company operates. Additionally, adapting to the new

environment requires the right ways of functioning regarding the cultural and environmental

dimensions of the country or region. A nation’s environment could also be at risk if the

company does all of its production in one country which might lead to environmental



Globalisation and International Marketing


Globalisation has made it easier for the word to spread around due to international

social media usage. When marketing or promoting a product, there are various things to keep

in mind while doing it on an international scale. Many companies try to be flexible with

marketing and adjust their ways according to the country’s cultural regulations and people’s

opinions. When some cultural beliefs are violated, it might create hate among the customers

which will ruin the company’s international image. This can be a huge damage for the

company since it will lose many customers from different countries affected by the spread of

news due to social media and users from various countries. However, globalisation is also

beneficial for international marketing providing the business with a wide range of platforms

and marketing teams. With social media, a company can spread the message with very little

effort and yet reach a large audience. With the social media algorithm, platforms fulfil the

need to spread the message to the target audience.


Problems with International Sales

Cultural Barriers

Overcoming cultural barriers and assimilating into the local culture is one of the most

important issues in international sales. Language barriers as well as differences in behaviour,

economics, conventions, views, ideas, and business procedures might impede communication

and the development of future client relationships. For example, a strategy that is deemed

proper or aggressive in one culture may be viewed as aggressive or inappropriate in another.

To properly handle these obstacles, one must possess cultural sensitivity, adaptability,

financial resources, skills, and frequently, an investment in local expertise.

Legal and Regulatory Compliance

Handling the legal and regulatory aspects of overseas markets is a significant

challenge in worldwide sales. Every country has its collection of laws, rules, political

systems, and compliance requirements that control many elements of its operations, including

marketing, property rights, import and export, taxation, and product standards. Breaking these

rules can result in expensive fines, legal problems, a tarnished reputation, and a reduction in

the company’s standing. Companies need to invest in resources, local teams, legal counsel,

compliance plans tailored to each target market, and research to meet this issue. Not only

that, but violations of laws and regulations could potentially result in a loss of customers from

the particular nation.

Currency Fluctuations and Financial Risks

Companies that have international sales often come across major challenges because

of fluctuations in currency values and budgetary limitations. Changes in exchange and

currency rates can have an impact on pricing, profit margins, budgeting, and cash flow,

making it difficult to forecast and control financial performance with accuracy. Accounting

and financial reporting are further complicated by managing transactions in different

currencies. Companies can reduce these risks by using strategies, implementing currency risk

management policies, and diversifying their revenue streams across several geographies and



Problems with International Marketing

Cultural Differences

As mentioned previously, cultural differences are quite necessary to obey and be

flexible regarding any important changes in operations while working in foreign countries. It

makes a significant impact on the audience when their culture is respected. In order to

overcome this problem, a company should have done deep research about the local cultures

and adapt to the new environment the company will be experiencing. However, a company

must be flexible in adapting to different challenges and environments before expanding its

territories overseas. In conclusion, culture is a compassionate and important thing to the

citizens of different nations and a company needs to obey them to gain more customers and

trust and develop a respectful image.

Language barriers

While conveying the same message in other languages, translation is not enough.

Languages play a crucial role in making connections between the company and the new

audience. Usage of the native language of the country in marketing gives a sense of

connection and effort to the customers. However, it might not be the best option when

considering the success rate. A company must have detailed information about the region

including the opinions of the locals and not just the internet. As the Blue Monarch Group

states, ‘‘By using the right words and phrases, marketers can effectively communicate with

their target audience and achieve their business objectives.’’


Benefits of Globalisation in International Marketing and Sales


After these major problems, the benefits of globalisation in international marketing

and sales outweigh all the disadvantages. Globalisation allows companies to reach a large

audience in various countries and regions giving all the ideal customers the right to consume

the services and goods (Mathew, The Impact of Globalization on International Marketing

Strategy, TalkCMO). Additionally, with globalisation, companies can now access different

resources available in different countries which can reduce production and raw material costs,

by producing in a country where the required raw materials are cheaper and have good

quality. When a company becomes global, it creates a unique worldwide brand name and

identity which makes the company feel trustworthy to the consumers (Naghi, The Effects of

Globalization on Marketing). Not only sales, but Globalisation plays an important role in

making marketing easy and faster. Globalisation helps speed the process of marketing and

spreads the concept of the company and product in a very short time and to a large audience

at the same time.


Digitalisation and International Sales and Marketing


The most important advancement of digitalisation could take place only because of

globalisation. The agreement of the people to think of the world as one helped digitalisation

to happen. Digitalisation helps people to connect with each other using various platforms

without physically meeting and sharing with each other. Using different social media

platforms, companies can advertise their brands while staying in only one country.

Nowadays, companies often advertise their products on YouTube or make reels on Instagram

reaching millions of users in only a couple of months (Anand, Impact of Digitalisation of

Marketing, RRJ). On the other hand, international shipping was made possible because of the

people’s need for products which are from other countries. Websites can be used to interact

with the buyers and partnering with the international shipping companies a company can

ensure that the customers get their products in any part of the world.




Overall, international sales and marketing are boosted by globalization and

digitalisation and are likely to be more efficient in the upcoming years. Even though there are

negative effects of international sales and marketing when a company becomes global, the

benefits tend to outweigh the negatives. A company that becomes global has the most to gain

and often has the upper hand when competing with other brands. Digitalisation, which was

made easier due to globalization, is an alternative to becoming global without actually

expanding the territories of the company. When it comes to international sales and marketing,

it is very important to know the political system and tax revenue system of the new nation.


Work citations


Anand, Abhishek, “Impact of Digitalisation of Marketing: An Analysis” Research Review

Journals, no. 5, August 2020, pg. 131.



ct-of-Digitalisation-of-Marketing-An-Analysis.pdf. Accessed on 21 March 2024


Blue Monarch Group. “The Impact of Language on Marketing.” Whitepaper, Blue Monarch

Group. bluemonarchgroup.com/whitepaper/case-study-the-impact-of-language-on-marketing.

Accessed 18 March 2024


Durand, Aurélia. ‘‘Marketing and Globalization’’. Routledge, 2018.


Mathew, Bineesh. “The Impact of Globalization on International Marketing Strategy” Talk

CMO 05 May 2023, talkcmo.com/featured/globalization-on-international-marketing-strategy/. Accessed

19 March 2024


Naghi, Remus Ionut, and Iulia Para. “The Effects of Globalization on Marketing.” GSTF

Journal on Business Review (GBR), vol. 2, no. 3, March 2013, pg. 1, West University

of Timisoara, core.ac.uk/download/pdf/233145747.pdf. Accessed 21 March 2024


“First globalization.” Wikipedia, Wikimedia Foundation, 12 Feb. 2024,

https://en.wikipedia.org/wiki/First_globalization. Accessed 11 March 2024


“Timeline of European exploration.” Wikipedia, Wikimedia Foundation, 12 Feb. 2024,

https://en.wikipedia.org/wiki/Timeline_of_European_exploration. Accessed 11 March



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