Globalization of Markets: Global Market and its impacts on developing countries – the case of tourism industry in Vietnam
Introduction
Globalization is more and more concerned by people all around the world. As globalization is inevitable, In fact, globalization is not a new phenomenon in human history. In the academic field, the term “global
This paper is aimed at providing Vietnamese marketing personnel a practically good source of analysis and theoretical base to help them survive in the increasingly competitive global market.
Discussions of findings 1. Literature review
The so-called global market is, in fact, not new in the world history. As examined by Giovanni (1999), global market has developed through 3 stages. The first stage was under the British hegemony which came into existence in the second half of the nineteenth century through the extension of the industrial revolution to long-distance transport and communication. Thirty years after the industrial revolution began; the rapid development of railways and steamships was forming the world into a single interacting economy as never before. The most remote parts of the world began to be linked together by means of communication which had no precedent for regularity, for the capacity to transport vast quantities of goods and numbers of people, and above all, for speed (Hobsbawm, 1979 cited in Giovanni, 1999). With this advanced system of transportation and communication, world trade expanded at unprecedented rate. According to Hobsbawm, the values of trade exchanges between Britain and the Ottoman Empire, Latin America, India and Australasia increased about sixfold. Not until the first half of the 20th century did witness the destruction of this first global market due to a gradual weakening of Britain’s global power. The British centered global market collapsed in the 1930s.

After the collapse of the first stage global market, the there was a period of time when no global market really existed. Not until the second half of the 20th century that the second stage of global market began. This is described as the reconstruction of the [first stage] global market. The development of this global market had a very close relationship with the growth of the US hegemony. As a matter of fact, the US has benefited greatly from the two world wars and thanks to that, it has become the central economy in such a rapidly developing economy after the World War II. Not like the period right after the break-down of British centered global market when the USA, even accounted for over 40 percent of world production, did not play much role in international economic exchanges, the decades after Second World War witnessed an ever increasing significance of the US to the world economy. It is reasonable to state that the US played a leading role in recovering the world economy, more precisely the capitalist world, from the devastating situation after WWII. By offering military aids to foreign governments and increasing direct military expenditures abroad, the US provided world trade and production with all liquidity needed to expand (Giovanni 1999). According to Thomas (1989) the two decades starting from the beginning of the Korean War and concluded by the Paris peace accords in early 1973 with the end of the Vietnam War, was the most sustained and profitable period of economic growth in the history of world capitalism. The US government, in fact, acted as a highly permissive central bank, which helped expand world trade and production at unprecedented rates. This expansion, by the world’s most powerful state at that time, the US, marked the reconstruction of the global market. As the 20th century came to its end, the global market under US hegemony has faced some challenges of the ever rapid changing world era. Once again, this discontinuity has its root in the weakening of US power. Consequently, such global market would no longer remain centered on the US, which signifies the beginning of third stage global market.
The tightening of financial constraints on US global power was closely associated with a major shift of the center of world-scale processes of production, trade and accumulation from North America to East Asia. The last three decades experienced an ever fast economic growth of East Asia in world history. The eight-percent plus average annual income growth set by several East Asian economies since the late 1960s is unique in the 130 years of recorded economic history (Union Bank of Switzerland, cited in Giovanni 1999). Importantly, it is the East Asian region that succeeded in global financial market even more spectacularly. Japan and China now hold really huge amounts of foreign exchange reserves that will definitely equip these countries with a financial capacity to increasingly exert their influences all over the world. Therefore, it is expected that the third stage of global market will broaden its focus toward East Asian region.

In short, the development of global market can be divided into three successive stages, each of which was associated with a specific region that highly economically advanced. It is important to notice that there were shifts in the impetus for the arrival of global market over these three stages. Industrial revolution in the 19th century was central in forming the first existent global market. The next stage, under the US hegemony period when there were a great deal of wars happening all over the continents, the military industry enjoyed a “golden age” of growth. As mentioned above, the military expenditure by the US government played a primary role in helping global trade and production recover and expand. The rising importance of East Asian economies in the global financial market in the recent time in expected to be the leading incentive in the newly emerging global market.

2. The Emergence of [Modern] Global Market
As discussed previously, global market is not a new in world history. In fact, however, it is not until today when the controversial issue of globalization is a worldwide concern, people become more conscious about the emergence of a global market. Recently, we have seen a growing list of products that have been used globally, which is evidence that consumers all over the world, despite deep-rooted cultural differences, are becoming more and more alike. In other words, consumer tastes and preferences are becoming global, which is, as some scholars argue, creating a new commercial reality with the emergence of global markets for standardized consumer products.
Such phenomenon is considered a facet of globalization, which is the globalization of markets. According to Hill (2004), The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global markets. From the economical point of view, there are two macro factors underlying the trend toward this globalization of markets(Frankel, 2000). The first is the decline in barriers to flow of goods, services and capital. The second factor is technological change, particularly the dramatic developments in recent years in communication, information processing, and transportation technologies.

3. Impacts of G.M on developing countries
There is a still going on debate on the implications of the emerging global market for the developing countries. One side argues that globalization, in particular the globalization of markets, is not to be blamed for any increase in world poverty and inequality—and point out that the world's poorest people, those living in rural Africa and South Asia, are those least touched by globalization. To the other side of the debate, the issue seems self-evident. Globalization may be good for the rich countries and the rich within countries, but it is bad news for the poorest countries and especially for the poor in those countries.
It does not matter who is right, who is wrong. The reality is that developing countries are vulnerable to any outcomes of globalization. Since these countries became more integrated in the increasingly globalized economy in the 1980s by carrying out market reforms and structural changes, they also became more reliant on the global markets. With the growing influence of markets in the past two decades have come changes in global inequality and world poverty. Over the past century, global inequality by most measures has been growing. At the end of the 19th century, the ratio of the average income of the richest to the poorest country in the world was 9 to 1. Today the average family in the United States is 60 times richer than the average family in Ethiopia or Bangladesh, in terms of purchasing power (Nancy, 2003).
However, no country can afford to remain isolated from the world economy. Integrating in global markets is part of the Every country should seek to reduce poverty. The International community should endeavor-by strengthening the international financial system, through trade, and through aid-to help the poorest countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to ensure all people in all countries have access to the benefits of globalization. In order to manage globalization process fairly, international reform efforts and democratic transnational institutions should be created and empowered. To reach such an objective UN-supported commission of 28 leaders produced influential 1995 report “ Our Global Neighborhood” and 1999 report “ The Millennium Year and the Reform Process” proposes to strengthen global governance without creating world government, while respecting the “rights of people and the role of civil society

4. Tourism industry in VN 5. Recommendation 6. Ethical approach

REFFERENCES
Giovanni, A. (1999). The Global Market. Journal of World-systems Research
URL: http://jwsr.ucr.edu/

Thomas, M. (1989). America’s Half Century. United States Foreign Policy in the Cold War,
Baltimore. The Johns Hopkins University Press.

Hill, C.W.L. (2004), “Global Business Today”, 3th edition, New York: Mc Graw Hill/Irwin.

Frankel, J.A. (200), “Globalization of the Economy”, National Bureau of Economic Research
Nancy, B. (2003). Asymmetric Globalization: Global Markets Require Good Global Politics. The Brookings Institution.
http://www.brookings.edu/articles/2003/spring_development_birdsall.aspx