Over the last few years, the world has gone through tremendous changes and particularly in the field of trade. This has been brought about by fast growing globalization due to the rapid increase in integration (from an economic perspective) as well as the degree of integration through investment flow and international trade. Globalization in this case refers to the concept, state or phenomenon or growth in interdependency, in national economies leading to growth in global markets. This includes both global completion and production. For instance, in the automotive industry, General Motors have accelerated over the past two decades due to growth of completion from the other related companies.
General Motors Company has expanded its economic trade to construction of facilities overseas with the process getting strong as the staff chooses the right process to set up distribution points in new markets. General Motors looks forward to increasing profits as the company plans to set and build capacity of products to 45 percent in Russia, India, Brazil as well as China by 2016, in order to benefit from expected sales growth. However, for the business to achieve this goal there are set targets that need to be achieved. One of the steps would be cost measures, where the business needs certain frame numbers on to which it should base internationally. During the year 2010, the company had 30 frames that the industry referred to as platforms. The expectations of the company are by 2018 the number should be cut to 14 platforms. Through this strategy, the company will be able to sell trucks and cars under the same platforms globally. Again, by doing this, the company will benefit from the international trade saving in the areas of engineering, manufacturing as well as cost of the design. Another initiative is to reduce the number of engines and reduce the parts distributed across the globe.
The growing global trade has led to the growth in commercial distribution systems around the world. This also has led to an expansion in global competition, in the organization that tries to venture in international business. Lately, the companies have invested in the ICT industry where the management of the business is consistent through the use of technology. Majority of the investors in the world would prefer to acquire their goods and services through online booking. This is one of the crucial processes that have seen companies such as the General Motors increase their sales globally (Nfa, Taylor and Thomas 63). The marketing together with management team have set sufficient advertisements online that facilitates knowledge and communication around the world. For instance, a customer can do shopping online of the car on preference, book it and have the car shipped to the targeted destination without complicated transactions. The online transfer is fast and easy to work with since any person can access the internet, make the payment through electronic payment systems. General Motors, through their 2014 annual report, have indicated their interest in providing the service to the third world countries. This is one of the future prospects of the company when it comes to trading the brands of cars (Krisher 20).
However, the online trade of these products has some negative impacts as there have been many frauds. Ordering a product online would not give you guarantee of receiving it on the other end. This is due to rising cases of cyber theft and other related issues.
For the company to archive its target in the future, it should work on international or global market dynamics. This process of global trading involves a situation where the company invests hugely on production facilities that are emerging in the new markets for the reduction of global production cost. For example for the General Motors, the management target China, Latin America, Malaysia and also the Southeast Asia. Venturing more in the global markets would improve the trade of the product globally as this would improve marketing strategies globally thus improving the sales for the company and induce economic growth. Market dynamics is a crucial business strategy for any company interested in improving its sales and global acceptance. General Motors Company regards this as an important aspect and looks forward to growing the company even more.
For the growth in trade distribution across the world, a look on the evolution of trade that has led to improvement of globalization dates back in 1880’s where automation, as well as transportation, made long distance trade possible. This involves the use of telephone and telegraphs for transfer of information that many companies and firms use to boost their chains of supply (Helpman 45).
The second part of the process comprised of the period where, under European colonies, the territories would come up with multinational subsidiaries. The period led to the European market expansion and the rise of American corporations. The new developments set the basis for the improvement of global trade distribution since the European traders got linked with the American traders. This happened in the early 1920 and this is the period when General Motors’ began together with Ford companies.
The next major revolution was the decrease in tariff barriers, which led to the expansion of the international trade immediately after the World War II. The period was marked by the people getting rich and, since the countries came to union and calm, there was a demand for supply of goods and services. America had just won the war, and it benefited much at the start of the international trade. Companies became widespread as the demand for the same products was high in the other countries. General Motors moved to provide its service to growing population I the U.S. as well as the world.
The last step of the process was the rise of technology that saw the introduction of computers with internet links and other automated gadgets for the benefit of the world of ICT. The general Motors Companies produced new cars that compromised of new technology that were fast and user friendly as compared to the old automotive. The technology made the business easy to run and such companies invested in other countries thus leading to globalization. The selling and buying of the products also improved through electronic banking systems that made easy access and transactions.
In conclusion, evolution in global trade distribution has seen a significant rise in process to the benefit of companies around the globe. One of the main important of this distribution is globalization - a concept of global integration and global development that contributed to an improvement in international trade. General Motors Company, for instance, has benefited widely from globalization since it has expanded its market to various countries. The company still aims at expanding its wings further to Latin America, Malaysia and China to improve its sales. One the most important factors that facilitate this growth are the improvement in technology around the world. The company aims at lowering the production cost and reaching out to the developing countries by 2016. This would be through advertising and investing hugely in such targeted markets.
Works Cited
Helpman, Elhanan. Understanding Global Trade. Cambridge: Harvard University Press, 2011. Print.
Krisher, Tom. "Huff Post Business." Tuesday April 2014. General Motors Plans Big International Expansion In Coming Years. Tuesday April 2014 <http://www.huffingtonpost.com/2011/08/09/general-motors-plans- vast_n_922326.html>.
Nfa, Annie Taylor, Annie Taylor and Caroline Thomas. Global Trade and Global Social Issues. London : Routledge, 2013. Print.
