What Is a Global Market?

The world market is a place for goods, services, and technology transactions in countries or regions around the world. It is composed of the markets of various participating countries or regions, and the markets are linked through international division of labor. ^[1]

Global market

The world market is the world-wide commodity exchange and commodity circulation, and it is the aggregate that closely connects the markets of countries through commodity exchange. It started in the late 15th century and the first half of the 16th century.

The composition of the world market is very complex and can be classified according to different criteria.

1. Divided by geographical direction. The world market can be divided into western European, North American, African, and Southeast Asian markets by continent or region. It can also be divided into American, Japanese, German, British, and Chinese markets by country. Relevant statistics often divide the countries of the world into three categories: markets in developed countries, markets in developing countries, and markets in centrally planned economies.

2. Divided by market objects. The world market can be divided into commodity markets,

(1) Diversification of international types in the world market

The world market refers to the sum of economic activities with commodity circulation as the main content among various countries and regions. It was formed along with the development of capitalism and the expansion of the international division of labor; it was based on the brutal expansion and colonial plunder of Western powers. Colonial expansion and plunder were the main ways of its formation.

The specific performance is:

The industrial revolution that began in Britain in the 1860s marked the victory of the capitalist mode of production. Industrial capital replaced commercial capital and began to dominate the world market. The development of the world market has entered a new era.

1. The large machine industry can only survive under the conditions of constantly expanding production and capturing new markets. Therefore, this pressure of expanding reproduction drives the bourgeoisie to look beyond new markets to find new markets. The development and advancement of production technology and process means that a larger market is needed to accommodate this new productivity. Facts show that every new rapid industrial growth in capitalist countries in the 19th century coincided with the opening of new foreign markets, that is, the expansion of the world market.

2. The large machinery industry not only needs an ever-expanding world sales market, but also needs to continuously expand its supply of raw materials. The large machinery industry has become a huge market for absorbing various agricultural and mineral raw materials. After the industrial revolution in Britain and other countries, the rapid growth of industries led them to more and more markets in the world, especially to the colonies and semi-colonies to purchase raw materials needed for large-scale production. In this way, the large capitalist machine industry has drawn more and more sources of raw materials into the world market.

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World market

Its formation has promoted the economic growth of various countries and regions and the strengthening of international relations. First, it has promoted the vigorous development of social productive forces in countries around the world. Secondly, it further promoted the development of western capitalism and objectively promoted the new

In a market economy, the fate of an enterprise depends on the market. To truly go to the market, an enterprise must face the market, understand the market, and adapt to the market. The market is the sum of supply and demand. The development and change of the market has both a very extensive and far-reaching linkage effect, and is subject to a series of related market factors. Only by fully understanding and mastering the basic laws of market development can companies effectively use these laws to analyze and predict market development trends, so as to formulate corresponding market development countermeasures, actively adapt to market development and changes, and promote enterprise development. From the perspective of the development of the contemporary world market, this article discusses several major trends in the development of the contemporary world market across the century, in order to further explore the general laws and basic trends of contemporary market development, and provide some insights for Chinese entrepreneurs to formulate a market development strategy. Great idea of guiding significance.

Technology in the world market

The sci-techization of the market is a major trend in the development of the contemporary world market. Each major scientific and technological revolution will inevitably lead to a corresponding industrial revolution, and thus a corresponding market revolution and consumer revolution. In the twentieth century, especially since the Second World War, science and technology developed rapidly and were quickly applied to production practices, setting off waves of industrial revolution again and again. The market is changing with each passing day. Various new products, new materials, new New market factors such as energy, new services, new ideas, new technologies, new tools, and new organizations have emerged endlessly, which have greatly changed people's social lifestyles, production methods and thinking modes. As an important productivity factor, the market circulation and market allocation of science and technology have caused the marketization of science and technology, including the marketization of science and technology development goals, the marketization of scientific and technological personnel, the marketization of scientific and technological funding, and the marketization of scientific and technological achievements. And so on. The marketization of science and technology will inevitably result in the sci-techization of the market, including the sci-techization of market subjects, the sci-techization of market objects, the sci-techization of market relations, and so on.

Internationalization of world market markets

The world market has existed since ancient times. For example, there were various market transactions between ancient and western countries, as evidenced by China's "Silk Road" and "Silk Road". However, that was just an underdeveloped international market transaction, and it was just a cross-border circulation of a few commodities. The development of modern science and technology has strongly promoted the internationalization of the market, including the internationalization of market subjects, the internationalization of market objects, and the internationalization of market relations. The internationalization of the contemporary market is not only manifested in the internationalization of commodity circulation and commodity exchange, but also in the internationalization of commodity production and internationalization of commodity consumption.

The essence of marketization is socialization, and socialized production methods have promoted marketization, making the division of commodity production increasingly sophisticated, the scope of commodity exchanges increasingly expanding, and international production and marketing methods becoming increasingly developed. As an international market player, the assets and annual sales of the world s largest multinational companies have far exceeded the gross national product of most countries in the world. According to statistics from the World Bank in 1993, only about 60 countries had gross domestic product (GDP) exceeding US $ 10 billion in 1991; and the "Fortune 500 Global Companies" listed in the "Luck" magazine on July 26, 1993 in the United States Among them, 139 multinational companies had sales of more than $ 10 billion in 1992. In addition, Lucky magazine also announced on May 31, 1993 that there were 7 service companies, 56 banks, and 30 financial companies. , 5 savings institutions, 32 life insurance companies, 13 retailers, 4 transportation companies, and 27 utility companies all have assets in the United States that exceed $ 10 billion. These large-scale and powerful multinational companies actively carry out transnational production and transnational marketing, which has greatly promoted the internationalization of the market.

Softening of world markets

The softening of the market is another major trend in the development of the contemporary world market. This is my personal understanding and opinion. The so-called market softening refers to the knowledge of the market, the informationization of the market, and the invisibleness of the market. This is a relative concept. The softening of the market has resulted in both a softening of production and a softening of marketing.

In the value of modern commodities, the intangible value of commodities, such as the knowledge value of commodities, the aesthetic value of commodities, the information value of commodities, the trademark value of commodities, the image value of commodities, the service value of commodities, and the psychological function value of commodities, continue to account for the proportion improve. The softening of commodity values requires companies to adopt corresponding market development strategies. For example, in China's relatively weak watch market, some domestic watches worth a few tens of yuan each have a large backlog, while some imported watches valued at tens of thousands of yuan are very marketable; some domestic watch movements are After the foreign merchant bought it and redesigned it, it was resold to the domestic market at a high price. It can be seen that the "hardware" of the watch is not reliable, but the "software" of the watch does not meet the needs of the market. In addition, in a drink battle between "National Water" and "Yangshui", Coca-Cola, Pepsi, Sprite, Qixi and other Coca-Cola and beverages have aggressively attacked the Chinese market, while domestic beverages have been declining. One of them The important reason is that the soft value content in domestic beverages is too low.

Greening of world markets and markets

The greening of the market is another major trend in the development of the contemporary world market. Under the conditions of a market economy, the development of the market is not only the development of economy, the development of science and technology, the development of culture, but also the development of the entire social lifestyle. Changes in the market environment have also changed people's views on the market and the environment. Human beings have only one earth, and human beings must protect their living environment in order to survive and develop. Therefore, the development of the market is also facing new problems of environmental protection, and the greening of the market has become a basic trend of contemporary market development.

The so-called market greening is to achieve the pollution-free, harmless, and cleanliness of commodity production and marketing, including clean production, clean packaging, clean sales, clean transportation, and clean consumption. Today, governments and companies around the world attach great importance to the issue of market greening, vigorously carry out green production and green marketing, and consumers attach great importance to green consumption, which has greatly promoted the greening of the market.

Standardization of world market markets

The market is the sum of buying and selling relationships. To properly handle the interests of buyers and sellers and third parties, we must jointly abide by some necessary market behavior codes and standards. With the development of technology and internationalization of the contemporary world market, the number of market players is increasing, the scope of market transactions is expanding, the market objects are becoming more and more abundant, the market relations are becoming more and more complex, the market environment is more dynamic, the market is closer, and market norms are becoming more The more the market competition and market conflict become more intense. In order to maintain the normal conduct of world market trading activities, it is necessary to establish a new world market order, regulate and restrict the market behavior of various market entities, and formulate necessary market standards. To adapt to market development and changes, it is necessary to understand and adapt to various market standards, such as product design standards, environmental protection standards, product liability standards, safety and health standards, tax standards, measurement standards, packaging standards, labeling standards, and product quality standards. , Service standards, contract standards, transaction method standards, and so on. This is also a basic trend in the development of the contemporary world market.

Market differentiation

The imbalance of market development and the complexity and variability of the market environment have resulted in the diversity of market demand. On the one hand, the sci-techization of the market, the internationalization of the market, and the standardization and standardization of the market have led to market unification; on the other hand, market culture, market regionalization, and market personalization have also caused market differences. Sex. This is another major trend in the development of the contemporary world market. To meet diverse market demands, companies must adopt corresponding market differentiation strategies, including product differentiation, price differentiation, customer differentiation, service differentiation, marketing differentiation, and so on. For example, in the Japanese home appliance industry, Toshiba mainly emphasizes product differentiation, Panasonic focuses on price differentiation, and Sanyo mainly implements a service differentiation strategy.

Substitution of world markets

The market for any kind of product will gradually become saturated and mature, and will gradually become aging or death, replaced by a new product and its market. Some traditional products have a longer market life cycle, while modern products have a shorter life cycle. After a new product goes on the market, it quickly enters the period of growth and maturity, then enters the market saturation period, and finally becomes aging and gradually exits the market. Therefore, the market life cycle of products is shortening day by day, and the rate of market substitution is accelerating. This is also a major feature of the development of the contemporary world market. For example, after the World War II, natural gas and oil replaced coal, foreign oil replaced domestic oil, truck freight replaced railways and ships, underground pipelines replaced oil tanks and barges to transport oil and petroleum products, private cars replaced public transportation, and jet aircraft replaced pistons. Aircraft, surface mining instead of underground mining, continuous casting instead of discontinuous casting, welding instead of riveting, and mechanization, automation, agricultural chemistry, etc.

Advanced market markets

The advancement of the market is another basic trend in the development of the contemporary world market. The rapid development of science and technology has promoted industrial development and upgrading. The technological revolution and the industrial revolution have driven the consumer revolution and the market revolution. The advancement of production will inevitably lead to the advancement of consumption and the advancement of the market. The market is both a scale and a mirror; it marks the development level of social productivity and reflects people's actual living conditions and conditions. Contemporary western developed countries have shifted backward industries and restricted the development of lower-level markets. In the Chinese market, in the 1960s, countries used agricultural products as raw materials, "high-grade confectionery" and "premium dim sum", which cost a few dollars per pound, and back and forth currencies; single machinery in the 1970s, low and medium technology as the main features, and unit prices Watches, sewing machines, and bicycles at around 100 yuan became the "three big pieces" in short supply; in the 1980s, products such as refrigerators, color TVs, washing machines, and recorders with mechatronics as their main feature and prices above 1,000 yuan became popular again; During the decade, the country introduced new auto industry policies and accelerated the reform of the housing system. The automobile and residential markets, such as 10,000 yuan and hundreds of thousands of yuan, are rapidly developing.