Globalized market players, dimensions, and value chain

Globalized market: players, dimensions, and value chain

Globalization is a worldwide phenomenon that we can attribute its beginnings to the industrial age. Also to the need to diversify markets to market the products. But its consolidation is obtained with the rise of technology and the development of communications. Hence the impact of the globalized market on import and export economies.

Globalized market players

When we speak of a globalized market, we find actors who fulfill very specific roles and whose nature is diverse. This allows a scenario to be outlined that transcends traditional structures in terms of governance, organization, and regulatory framework.

In this order of ideas, the following actors are identified at a first glance:

  • The State: the concept of state evolves to respond to the integration needs relevant to the new emerging market. Structures are developed that are supported by the countries involved but whose area of action is greater.
  • The territory: the territorial border demarcations of the countries are respected. But in the globalized market, new extensions of territory are established that extend beyond known borders. These are declared in the commercial treaties that are signed.
  • International organizations: the new supra-territorial structures make it necessary to install labor organizations and human coexistence in general.
  • The productive units: the extension of the industries and organizations that offer goods and/or services have a particular treatment. More when they are within special trade or production zones. The legal and tax framework is adjusted to facilitate the development of trade.
  • Citizens and individuals: citizens have a broader treatment regarding their benefits and considerations. They are no longer just inhabitants of a country but are part of a commercial territory.

Global market dimensions

When speaking of a globalized market, dimensions that were managed within traditional schemes are reconfigured.

So, in the new configuration you have to:

  • Physical dimension: traditional rigid borders are relaxed and give way to new trade blocs. These allow the conception of new territorial spaces.
  • Cultural dimension: in the globalized market there is a process of generation of a new culture. The past is part of the particular history of those who live in the territories where the globalized market develops. But a process of exchange of experiences begins that originates the establishment of new cultural experiences.
  • Technological dimension: globalized markets consolidate the information society through the establishment of communication structures. They are based on Information and Communication Technologies (ICT).
  • Social dimension: globalized markets generate mobilizations of people to areas of economic development. In this way, you can enjoy economic well-being. But this mobilization brings with it other social risks that must be evaluated and managed.
  • Political dimension: globalized markets are based on democratic relations between their actors. This includes respect for human rights, the autonomy of the public powers of the countries involved, and economic freedoms.
  • Legal dimension: the globalized market restructures the new vision of the justice systems of each of the actors involved in the process of exchange of goods and services.

Thus, a new judicial structure is developed where a common legal framework is unified that allows fighting and mediating commercial, civil, and criminal matters.

The international global value chain from the globalized market

When we speak of the value chain we are in the presence of a concept that emerges from the application of globalized markets. And it is that the value chain is nothing other than the set of production activities located in different countries to produce a good or service.

It is like developing a chain link by link, using its potential and advantages. These can be scientific, technological, logistical, and commercial advantages in different regions of the world.

Then, the new good or service that is produced has an implicit added value or added value. It benefits each of the actors involved in each of the phases of the production process. It is a win-win relationship from the birth of the idea, to the final sale.

International global value chains are the democratization of markets and production processes.