Less than a decade ago many economic players pronounced the triumph of global marketing. Governments encouraged market-based decision rules of economic games. Those who invoked benefits of government planning and state monopolies rapidly encountered substantial public doubt. Ten years is a long time for firms and their customers. Conditions have changed.
Back then, competitive market conditions held preference. Nations that had turned away from mandated economies found rewards in very strong growth rates. There were sharp expectations for growing political freedom, greater increases in life expectancy, higher literacy rates, and a better overall standard of living.
Firms encountered substantial benefits from globalization. They found a wider market reach, more customers, and higher productivity. International firms outperformed their competitors who worked only domestically. International Marketers associated with global tasks found their jobs interesting and profitable. Workers in international ventures used to have their income well outdistance that of domestic competitors. Workplace security was high and being part of an internationally growing enterprise led to pride, interest, and an optimistic view of the future.
Where are we now? Unfortunately, unique international growth has not continued. Dedication now encounters antipathy. Firms, governments and individuals encounter sliding shifts and have to cope with adverse conditions abroad. Competition is harsher, and many firms are searching for approaches just to help make it through the night. A now growing lack of protocol adherence by an entire litter of adversaries is giving shrillness to the midnight environment.
The configuration, purpose, and impact of media have shriveled, leading to sharp reductions in communications. The consequence is less well-understood decision-making. Simultaneously, public debt is increasing vastly. How long can one stave off the large-scale transfer of funds? And flow again they must, triggered by the presence of a high-pressure surplus, pent up demand, and the investment desire of wealth.
For the time being, much policy emphasis rests with short-term issues. Eyes can be closed tightly, but eventually, international debt will trigger international money flows. New rules for market access will need to come about. America must be compensated by the benefits which have been provided by American innovation, education, and protection of its clientele. Here it will quickly become important to create and implement full pricing schemes which enable all sides to contribute fully, rapidly, and fairly.
In spite of the significant changes in the world marketplace, all sides need to understand and appreciate the transformational and uplifting capabilities of market forces. We can and should develop relationships that, due to clear and transparent pricing of invested inputs offer strength and growth. Let new users find ways to understand all the efforts and investment it takes to bring success to an industrial sector. Even the development of an effective vaccine triggers pride and feelings of success. We help by working with neighbors and friends, offering them jobs, making life exciting, and leading to widespread success. Then we will all be better off than we were a decade ago.
Professor Michael Czinkota has been teaching international trade and business at Georgetown University for 40 years.© Japan Today