Institutions and Resources Affecting Marketing and Supply Chain Management Essay

Global and Regional Economic Integration

With the increasing globalization of emerging economies, regional and global economic integration is expanding, generating both benefits and challenges. While seeking to sustain global and region-wide economic growth, it is important to create an integrated market for the free flow of trade and investment. Economic integration is not working for the majority of the regional and global parties. In the course of the most recent period of drastic global trade and investment, economic inequality attained its peak both regionally and internationally. According to a report by the UN Development Program, the wealthiest 20% of the global population consumes 86% of the world's resources. In contrast, the poorest 80% are argued to consume a mere 14% (Peng, 2014).

Manufacturers operating under a regional or global bloc may profit from market size (Peng, 2014). In turn, market size is a vital variable that facilitates innovation, the fixed costs of which is felt throughout the consumer base. Similarly, consumers are likely to benefit from intense rivalry in product markets. Such impacts critically rely not just on the creation of a single customer area but also on the removal of obstacles to market access. In this respect, notable progress has been documented in Russia, Kazakhstan and Belarus where corporations have equal access to government procurement contract in all the three nations. Regional and global economic integration play a critical part in this decline. It influences all jobs and economic sectors (Peng, 2014). From the perspective of Wall Street investors and multinational corporations, this integration is possibly seen as a wonderful phenomenon presenting numerous opportunities. However, from the local manufacturers' perspective, the middle class, professional service employees, manufacturing staff and the overall national economic growth, the cons overpower the benefits.

How institutions and resources affect marketing and supply chain management

Institutions refer to the network of suppliers, manufacturers, distributors, and customers that guide how business is conducted. Weak institutions are highly expected to fail in ensuring modest efficiency of markets; thus, foreign investors would not have the ability to depend on markets to access local resources. In such a situation, the acquisition will be prohibitively expensive because of inefficiencies in financial markets. In addition, under such circumstance, it is argued that the resources of an acquired company might be improperly valued, and their integration would be challenging. Therefore, foreign investors pursuing local resources may opt to create a new business by collaborating with a local company (Pedersen et al. 2011). The concept of supply chain management enables the highlighted institutions to integrate their operations thus increasing response time while reducing costs to the consumer. Therefore, the absence of a formal policy to govern SCM inhibits the effectiveness of reverse logistics. This is especially notable when discussing the effect of resources on marketing and supply chain. A commitment of resources might be in the form of training employees on new technology or even information to all departments on what needs to be done. Information support remains crucial to both…