An essay is presented that seeks to answer in a sustained way a set of questions related to market analysis and its international environment. The study uses nationally and internationally recognized methodological aspects as best practices for presentation of trials.
To comply with the elaboration, an updated bibliography has been consulted that collects the views of various authors on the subject, which comes from both physical material from texts and electronic publications on the Internet. In the development of the work, an overview of the conceptual aspects of Market, Marketing, Marketing, Trade, Competitiveness and Globalization is offered, with the purpose of analyzing through the essay, the factors that drive and lead international markets to competitiveness. The essay contains information on: Market, Marketing, Marketing, Commerce, Competitiveness and Globalization; Mercantilism; Classicism; Neoclassicism; Postclassicism; Balance Theory; Keynesianism; Bourgeoisie; Socialism; Neoliberalism.
Fundamental definitions
Before beginning with the analysis of international markets and estimating what the current performance of companies is like, several meanings must be given, such as Market, Marketing, Marketing, Commerce, Competitiveness and Globalization.
Market, (Salvat Encyclopedia) It comes from the Latin mercatus, which means market, which is the place or place where a trade occurs, buy, sell goods or merchandise.
Marketing, (Encyclopedia Salvat) It is the relationship that exists between a seller and a consumer to obtain or sell a merchandise.
Marketing, (Encyclopedia Salvat) are sets of resources and procedures put into practice to conquer a market.
Commerce, (Encyclopedia Salvat) It is the negotiation that is done buying, selling a merchandise or an establishment where this same function is carried out.
Competitiveness, understanding the concept of Competitiveness, is necessarily the starting point of an analysis of this type. We all talk about competitiveness, but each entity translates the concept in different terms. Stoner, Freeman and Gilbert, in their work "Administration", (1996), define competitiveness as the relative position that a competitor has in relation to other competitors.
Globalization, (Stoner) When organizations recognize that business should focus on the world, and not only on the local.
Purpose
The purpose of this essay is to analyze the factors that drive and lead international markets to competitiveness.
Theoretical fundament
The aspects related to competitive activity in international markets have had their greatest boom in the countries of Europe and the United States, although this does not escape what is known up to now as market activity in all of Latin America; therefore, the market was originated for many centuries, just as commerce was born. But in recent decades the market has had one of the strongest revolution in the world, by which it has been directed towards the transformation of national economies.
The evolution of the market began when it was aimed at international exchange, this trend was that of mercantilism, presenting itself as elements that contributed to Europe's contact with the rest of the world, historical situations such as: before the 16th century there were not properly constituted national states and because trade between the different regions of the world had acquired importance since historical events such as The Crusades (1095-1270), the decomposition of the feudal economy, the discovery of America, and the culmination of the Hundred Years War, with which different nations arise.
This ideological current "Mercantilismo" (expression of commercial capitalism), was originated by the wealth of nations through the accumulation of precious metals, the competition determined more between countries than between companies, and the acquisition of precious metals that relegated second, the development of the internal market.
In the middle of the 17th century and the end of the 18th century, the defense of industrial capitalism “El Clasicismo” originated. At this stage, thinkers opposed the vision of homogeneous goods, presenting the conception of differentiated individual markets for each company, moving on to taking perfect to imperfect markets into account, combining perfectly the forms of perfect competition, oligopoly, and monopoly and emerging classical and neoclassical thinking that influence the current of markets.
At the end of the 18th century and the beginning of the 19th century, it was referring to the culmination of capitalism "Neoclassicism", which was the stage of the consolidation of European capitalism and the rise of imperialism for neoclassical economists, this neoclassical principle originates the problem fundamental to the allocation and optimization of production factors, the existence of free competition and the free movement of goods both nationally and internationally.
In the mid-nineteenth century, the expression of "Postclassicism" was developed with its opportunity cost theory and Hechsher-Ohilin with the conventional theory, which was called "Theory of Balance"; In this way, the practical utilities of these theories were developed, which focus on the analysis of quantifiable real events and subject to statistical verification of international trade, were aimed at the activities of large companies.
Starting in 1936, the current of Keynesianism emerged as a product of the great crisis of capitalism, which led to the recognition of involuntary unemployment. I also take into account, as important factors, the quantitative theory of money, the deficiency of the law of markets and the existence of structural imbalances; Both the political economy and international trade focus the analysis from a different point of view; income is now taken into account as an indispensable factor to replace the price.
Subsequently, the "bourgeoisie" that represents the international theory of the underdeveloped world arose, this current is oriented towards commercial exchange between developed and industrialized countries with underdeveloped countries, imposing two currents, the exchange between equals (with commercial equality between operations) and unequal exchange (without trade balance and with advantages for developed countries).
With the current of "Socialism", it speaks of the principles are already included in the Economic Council for Mutual Aid that proclaims principles of equal and mutual aid, through which it is intended to carry out joint projects, the equal competition of all nations, the proportional benefit for the parties and, in general, collaboration and conciliation of the parties.
From the 70's and 80's the “Neoliberalism” trend emerged, based mainly on the voluntary exchange of products and services through a market capable of organizing its economic activity; in this current the state is limited to complying with providing the means for the definition of the rules of conduct, litigation failures, providing transportation and communications facilities, supervising the issuance of the currency and managing adequate tariff policies, this is done while maintaining the macroeconomic and microeconomic balance, which maintains the adequate national economic level and provides quality of life for all inhabitants, this is supported by a scheme of economic freedom outside the protectionism and interventionism of the state; as for the companies,These must provide the way to survive in an open and competitive market, where consumers have full freedom to choose what they want, how they want it, under what conditions and from whom they should buy it, providing companies with products and services at national and international level. and with business structures that lead you to design market strategies for penetration and exchange without borders, facing your competitors and obtaining the preferred site; on these concepts, it began to deal with guidelines such as integration, common markets and globalization, the globalization of markets, the growth of international business that was related to the international competitiveness of companies (the relationship of the European single market and Spanish).
Globalization (is the development of international business, which is due to the existence of an important comparative advantage in the production of a certain good in a certain country) of these markets produces the expansion of international business, facilitated by freedom of international trade and a fall in the cost of transportation; the growing relationship of the undetermined demand patterns in consumer goods, in turn, lead to a growing interdependence of the different economies, which somehow strive for the process as a whole; in this way, political changes, the modification of government policies and new agreements between countries have had an impact on the global market; therefore,“Globalization is understood as one of the most important changes registered in the external environment of most companies, which refers to business relationships, made with people from other countries”; For these reasons, agreements such as the one that forms the European Community originate in 1992 with its goal of reducing trade barriers between the countries of the community and creating only the markets of 300 million people and promoting the political unity of Europe; Another international aspect is represented by the version of the Soviet Union whose primary objective was to raise the need to gradually end the centralized coordination of the economy and its interest in accepting foreign investment; Also in this regard, the North American Free Trade Agreement (1992) is presented,It was negotiated by officials representing the United States, Canada and Mexico, who sought to eliminate tariff and non-tariff barriers to trade between people and companies.
Raising questions
Considering this theoretical seat, we are able to ask the following questions: What role have economies played before Globalization, and against globalization in Venezuela and the world? What is the relationship between Competitiveness, globalization and economic freedom? What are the conditions that a nation and its companies must have in the face of competitiveness and global markets?
Situational analysis
In response to the first question, it can be determined that in the world there is a high influence of the State as manager and promoter of development, with undesirable consequences for private initiative; that is to say, the economies have reached economies with more market freedom and private initiative, where governments exercise a leadership role rather than intervention.
Likewise in the world it gives up its benefits to carry out by itself many activities that are best performed under the sphere of private competition, such as: Ports, airports, communications, energy production, etc., which has reached a model development with greater initiatives to economic freedom, this has come to amazing results across the nation.
In Venezuela, market freedom does not exist as such since the government is interventionist and protectionist, it does not stimulate private competition; Even though politicians and rulers are aware of the world in which they operate, and although they make small efforts to integrate with neighboring nations and the global world, and lately they have tried to stimulate private investment through privatizations, it has been shown that transnational companies still have reservations in their investments in the country, due to the high degree of protectionism and interventionism previously reflected.
The second question is answered, in terms of competitiveness and the Globalization of economies is, in essence, a consequence of the greater degree of economic freedom and the emphasis on private initiative.
The countries with the highest levels of development occupy the first places in the world studies on Competitiveness, have open economies and promote the globalization of their markets.
The third question is answered, the social, political and economic conditions in which the countries operate, are determinants of their success in world competitiveness.
Without a good political “maturity” and economic “health”, a good level of competitiveness cannot be developed.
Therefore, it is necessary to be a country with advantageous characteristics and to appear so to the world community.
In order to be at this level, certain parameters must be met, which are:
As basic sources such as competitiveness are assets and processes.
Processes are transformations of assets that generate wealth, which create new assets for future generations.
When you depend only on existing natural resources, which are common in other countries, you can be competitive.
Less powerful countries can become competitive based on adequate transformation processes to face global markets.
The internationalization of a country may be based on the attractiveness of its characteristics or the aggressiveness with which it is present in the market or both.
Countries must, through their social institutions and political organizations, establish adequate schemes of governments and economic policies that favor market sectors, to compete in the global world.
Companies must accept the new market conditions, adapt their culture, organization and products, according to the demands of consumers.
Conclusions
Therefore, it can be concluded that, in the face of a global market, nations have tried to integrate through international pacts and treaties, establishing common markets and free economies; In turn, government organizations and institutions have tended to modify their political and government cadres, eliminating protectionist barriers and state interventionism that affects companies and the market in general.
For their part, companies must face and accept this change in the environment to be successful and competitive, face the global market by offering the best products and services under the most optimal competitive conditions that take into account quality, opportunity, prices and consumer expectations.
Bibliographic references
CANALS, Jordi International Competition and Business Strategy, Editorial Ariel, Spain 1991.
STONER, James Administración, Prentice Hall, México 1996.
KRUGMAN, Paul International Economics-Theory of International Trade, 1991
TORRES GAYTÄN, Ricardo Teoría del Comercio Internacional, Siglo Veintiuno Editores México 1985.
