Consumer Behavior Patterns in the Era of Globalization
Globalization spawned elevated consumer awareness at increased tangible rates. The growing trend of stagnate income levels attribute to globalization as an effect came under pressure to fit to a new generation of markets driven to constantly changing consumer preferences and demand contemporary from the effects of a globalized economy. This effectuate to provide flexible mechanisms appropriate to varied consumer preferences that cause increased supply chains markets with a proportional number of buyers and sellers alike that respond to increasing competition among markets fit to different consumer categories. This, in turn, lead to driving factors on how consumer behavior and preferences are affected for the long term in different scales from varied national economies and in return, how consumer behavior responds to various consumer goods according to needs and at consumer profile segments with respect to lifestyle, quality, brand and price with the overall economic profile the national jurisdiction under which the consumer in question holds (Spiewack, n.d., p. 1).Another alternative driving factor is how respective national legal systems vary that employ different antitrust and legislative approaches with respect to international trade policy according to the dictates by international economic dynamics (Feinburg et al., 2010, p. 1). This drives the whole consumer matrix on behavior from the lowest hierarchal actor, the consumer, in ways the preference factor impacts the market on macroeconomic levels, and to what extent, national economies on a respective country basis respond. This spurs how the competition factor shapes among markets on a national and international purview and the pace international economic policy institutions form and permeate varied national societies and business communities manifest in different norms and purchasing choices the public employ based on culture. Along to note the institutionalization policymaking adjuncts to in international levels involve how international arbitrage measures on pricing function in different countries taken to control a country’s international trade performance through the flow of goods and services affect foreign currency and consumer behavior incited by inflation (Anderson and Ginsburgh, 1999, p.1). Added to the diversity spread on a dominant scale attribute how internet technology breakthrough influence users across the globe institutionalized a convenient and efficient purchasing system stretching the consumer preference scale to avail a wider pool of choices with increased quality and more affordable prices at one’s fingertips as an increasing trend (Spiewack, n.d.,p.1). That said this provides with elevated sense to discuss economic players and indicators in the international level that shape consumer behavior along the basic tenets on price, brand, quality as central macroeconomic determinants.
International economic principles centralize the supply-demand relationships and foreign currency markets. Demand is the determinant factor by which supply depends on. Demand which bear weight on purchasing power and income level distribution remain asymmetrical. Due to varied concentrations of these determinant factors around the globe, the economic performance and foreign currency market between developed and developing countries dictate the purchasing power for trade and goods that vary. The credit risk factor also associates to the economic matrix that depend on the economic profile linked to a country, dictates the level interest rates central banks and their capability offer, and the growth and availability of diverse equity market and debt based financing packages or fixed income markets to these countries dictate the supply level accord to their purchasing power respectively. The greater the economic performance through well distributed income the greater chances for larger financing avail at lower interest rates, the greater the purchasing power for good and services, then the greater the supply in accord to the demand. This is also proportioned to a weaker economy. Should this be true a greater supply and demand means a wider coverage for quality goods and services. The degree of flow of goods and economic performance relative to supply and demand corresponds to varying indices among countries inherent to their economic rank. Contemporary economic recessions that ravage developed countries impact the prime markets with high liability margins with lesser equity, along with high interest rates ongoing as prevalent economic issues. Due to the mutual degenerate effects, to give leverage to purchasing power with respect to good and services uniformly distributed among all markets to maintain tolerable demand levels with respect to supply, between developed and emerging markets, rests on international arbitrage as a necessary price control mechanism which provide to discriminate prices yet able to generate marginalized profits considering the market in question is exposed to monopolistic conditions (Anderson and Ginsburgh, 1999, pp.1-2). However sheer level adjustment in international price arbitrage technique is a disadvantageous measure and warrant compensation to offset deficits is imperative by encouraging foreign direct investments. This was similar in situation to China reflected on the Engel’s coefficient as the governing index that sheered foreign trade, international and national economic policy restructuring that shifted consumer demand to be lower than income level due to national income growth (Anderson and Ginsburgh,1999,p.5). On the national level, the higher income distributed, demand is likely distributed among consumers who prefer known and higher quality brands, but is not the necessary factor for purchase nowadays because of income constraints while quality is not sacrificed. These dynamics cause to study how economic indicators play.
Consumer preference proved a factor respective to national trade policy and antitrust enforcement on national trade policies governed by legislative decisions. Research on international political dynamics show respective nations the vested interest expressed with their culture influence who control international competition by imposing limits on the flow of trade and goods and therefore results to limited choices left to consumers. Due to the onset of trade liberalization through free trade agreements or mergers and acquisitions between countries as the concurrent trend, a wide exposure to free competition among markets can yield likely to a lesser market share among competitors, with less revenue from sales. If a foreign competitor hovers in sales rank over a domestic competitor and in cases when the former has a stronger currency over the weaker on the average, meaning public preference on imported goods than domestic, then the outflow to pay imported goods will be costly and harmful to the economic welfare. Aside that demand on certain markets thrust heavily on religious belief and its adherence to a group of people. For example, Muslims require covered gowns and headdresses than the modern contemporary fashion world offers. Mergers and acquisitions among countries pose to disclose trade secrets that pose substantial antitrust risk while championing greater investment opportunities and market expansion. Other reasons bear on national security, economic and political interests especially that thrust on sensitive technologies by economic powers. Once violations occur legislators take action to file antitrust suits against any firm regardless of nationality for the protective welfare of constituents. This especially pervaded international intellectual property law to govern and model national legal structures prevalent in developed nations to dispose legal guidance implementing certain rules to address a wide spectrum of issues. That said antitrust laws serve to evade competitive market behavior and hence limit consumer choices (Feinburg et al., 2010, p.2). But the onset of internet technology introduce international boundaries to merge by which trade costs are reduced to minimal levels and come to equilibrium resulting to affordable price while antitrust risks increase that subject to careful mutual corporate governance among mergers.
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