The impact of global marketing affects all nations and the corporations within them as well as every citizen, working or unemployed, within their populations. In a world now working towards a global peace and prosperity, global marketing is inevitable. Statistics reflect the increasing popularity of the world wide web as well as the unlimited communications capabilities which allow us to conduct business and buy products and services either from a local business or from a market on the other side of the world.
However, the global market is chiefly responsible for stabilizing inflation rates in the European and U.S. arenas. One byproduct of global marketing is the development and implementation of the Euro dollar. Although it is result of globalization, it has effectively addressed the long standing issues of confusion and instability in the international trade market due to the continuous fluctuations of the scores of currencies existing in the world marketplace.
A significant slowing in inflationary trends has been noted during the last few years but many believe that the future will bring a series of setbacks as well. In The Grandfather Economic Report , Michael Hodges wrote that “in the 1990's the ( U.S. ) federal government created $2.8 trillion of new debt… more than created in the nation's entire history prior to 1990 ….and another $2.7 trillion since 9/11/01 .” Yet federal deposit income in China increases by roughly 15% each year and will have a serious impact on the U.S. national debt. An alarming loss of revenue due to increasingly disproportional balances of import and export trade between the U.S. and Asia will certainly plague America and Europe . This trend will be hard to reverse if changes in the trade balance can not be initiated. Most of these conditions resulting from the Asian policy that devalues their currencies compared to that of the dollar.
The impact of this policy on the US trade balance is most certainly negative. Devalued exchange rates have resulted in an increase in the number of dollars being sent to Asian economies. Statistics are beginning to reflect a deficit of funds returning to western nations from the global market due to trade block tactics such as high import tariffs discourage western import sales to the Asian market. The impact of this policy on the trade balance on Asian economies is that a continue trend of economic prosperity can be anticipated for these Asian nations. This trend, if allowed to continue, will also bring growth at successively higher percentage rates with each passing year.
As for how this policy will level of indebtedness of US households, businesses and Government, a continuation of this policy regime will undoubtedly result in a rise in debt levels for all, as set the stage for possible economic depression not only for the U.S. Government and global scale due to enormity of the global marketing venue. Immediate and viable initiatives must be utilized in order to prevent this threat.
