Global competition spells the end to domestic market domination. Even small local markets, which used to be protected from distant competitors, feel the pressure. Companies that do not adapt to these new global realities will fall victim to those that do.

There are many manufacturers who make exportable products but are not selling them abroad. They lack the capital, knowledge and experience to market them internationally. Manufacturers by their "business nature" are conservative marketers, usually building outlets for their products over a long period of time, in many cases years. However, with the increase in foreign competition, they will have to use a more aggressive marketing style to compete in the new global marketplace. Small manufacturers are turning to global marketing networks to help them market their products/services abroad.

Economic Globalism

Economic Globalism is a new worldwide economic order, in which a majority of nations prescribe to the free enterprise system. National boundaries have given way to free market economics. Economic Globalism is now a reality that all businesses large and small must come to grips with in order to successfully compete.

The new global marketplace accelerates competition, thereby reducing the lead time for companies with new products, services or technologies to reach and service their target market. To survive and grow in this type of economic environment, a business will need strategic markets where it can expand its sales and be competitive. Businesses both large and small are turning to niche markets where competition is reduced.

The globalizing of a business is a worldwide survival strategy that a company adopts to successfully compete in the new global marketplace. It allows a company to insulate a portion of their existing market while increasing the size of their expandable market share. A globalized business could insulate up to 25% of an expandable market share from competitors. Companies who find and secure a niche market will have the edge in the 21st century.

Currently, there are three major trading areas in the world: North America, the Pacific Rim and the European Community. These three areas account for 80 percent of the World's Gross Domestic Products (GDP) and 75 percent of the world's exports and imports. They are known as the " Triad". The areas that make-up the Triad are: North America, including the United States, Canada, and Mexico; the Pacific Rim, include Japan, South Korea, Taiwan, Hong Kong, Malayans, Singapore, Thailand, Indonesia, Brunei, Philippines, Australia, and New Zealand: and the European Countries, including Belgium, Denmark, France, West Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and the United Kingdom.

North America's imports exceed its exports and they reflect the U.S. trade deficits. The Pacific Rim's exports exceed its imports, reflecting these countries' developing export markets. In 1992, the European Countries proposed a European Common Market or EC-92, trade agreement which eliminated all trade barriers between them. In the west, the United States, Mexico and Canada ratified the North Americans Free Trade Agreement (NAFTA) of 1996. These two major agreements reflected the trend toward the development of regional trading blocs.

These trading blocs present both obstacles and opportunities for companies outside the region. Companies which are established within these regions will have major advantages over companies outside the bloc. Recognizing the effect the Triad Global Economy., Japanese companies like Yamaha, Sony, Honda Oman and Matsuihita have decentralized responsibility for strategy and operations to regional headquarters located in each of the Triad areas. To secure increased market share many companies are acquiring businesses and merging with firms that are established in Triad Countries.

There are other trading blocs forming in other parts of the world. South America is the latest to begin forming a Regional Trading Bloc. It includes the countries of Brazil, Argentina, Paraguay, and Uruguay. They now have a tariff- free common market. There is an even larger Free Trading Bloc proposal that will include all the countries in North and South America, and the Caribbean. It was first known as the "Enterprise for the Americas".

Free Trade Area of The Americas

This regional trading bloc name has been changed to the Free Trade Area of The Americas, (FTAA). When this trade agreement is fully implemented it will create an economic and trade nation. This new economic and trade nation will forever be known as NuAmericas, because this business and trade union for the first time in the history of the Americas will include island nations. The Americas is the old name used when referring to countries attached to the continent only. NuAmericas include all the countries in the western hemisphere. It will have a population of more than 800 million people and a Growth National Product (GNP) of more than 12 trillion dollars, making it the world's first economic and trade superpower.

This agreement will replace the North American Free Trade Agreement (NAFTA) that was implemented in 1994, between Canada, United States and Mexico. The NAFTA partnership have been successful and is paving the way for the FTAA agreement. The globalization of trade has made many countries understand the need to create blocs or join an existing one.