The Global Financial Crisis Hits The World Economy

Going global was common for almost every company out there, until the year 2008 when the global financial crisis hits the world’s economy. The global economy since then entered into a new phase of globalization, known as ‘guarded globalization’. Developing nations began defending their local industry, and became more cautious when allowing multinational companies to operate in its soil (Bremmer 2014). They heightened their national security, recognizing the importance of more sectors and taking measurements to prevent multinational companies from entering the country. They are now swayed into promoting their domestic and stated owned businesses. Prices of goods were affected, for example Pfizer. It is worth to take note that the escalation†¦show more content†¦Ã¢â‚¬Å"Globalization also means the growing integration of markets and nation-states and the spread of technological advancement. A high globalization speed may also generate opportunities for specu lation, uncertainty, and risk† (Martens Raza 2010, p. 281) Free trade for goods and labor are encouraged across borders. These economic and social developments had improved the global economy thus improves standard of living and human development (Martens Raza 2010). Firms should look out for global market opportunities to expand their business into various markets and also to estimate the demand for products and services in various economies. There are many markers that could indicate favorable opportunities for companies to export, invest, source or partner in foreign markets, and these could be promising mixtures of circumstance, locations and timing (Cavusgil et al. 2014). Firms can carry out a global market opportunity assessment to analyze a market’s suitability to the firm. There are six tasks for the global market opportunity assessment. Firstly is the organizational readiness to globalize. This could gauge a firm’s preparedness to conduct international business with an initial assessment, which includes its financial resources and management’s commitment. Secondly is the suitability of products and services for foreign market. Products that sell well in the domestic market might not be suitable to sell in other marke ts, so firms need to determine how