Final answer:
Globalization has led to cross-border buying and selling, necessitating businesses to adapt products to various local markets. Technology and globalization have contributed to greater competition and a shift towards a global market strategy.
Step-by-step explanation:
In the context of globalization, the goods and services market has expanded beyond national borders, transforming the way firms and households interact. The goods and services market refers to the environment where firms are the sellers of products they create, and households act as buyers. As buying and selling have become global, firms are required to adapt their products to meet the localized needs and preferences of consumers in different markets. This is known as product adaptation, and it is becoming a norm due to consumers becoming more particular and demanding unique attention to their specific preferences.
Amplified by technology, especially in communications, consumers can easily access a global marketplace. Local retail businesses and suppliers are now in direct competition with global entities, as products ranging from books to pet supplies can be ordered from any corner of the world. This intense competition forces businesses to adopt a global orientation in their strategy, scrutinizing every detail of their approach, from product design to marketing campaigns, ensuring they cater to diverse consumer bases at both local and global scales. The rise of business-to-business websites that facilitate global transactions and the widespread adoption of standardized advertising also indicate a shift towards a more interconnected, global market.