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The World Impact of International Firms

Autor:   •  December 11, 2012  •  Research Paper  •  3,354 Words (14 Pages)  •  925 Views

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GLOBALIZATION REPORT

Table of Contents

Introduction 3

Why do firms decide to go from national to global? 4

Costs shrinkage - external factors 4

Raising revenues - internal factors 5

How do firms go global? How do they succeed globalizing? 6

Product adaptation - the end of a standardized world 5

Organization adaptation 5

Why do firms decide to go from national to global? 7

Impact for the sourcing country 7

Raising revenues - internal factors 8

Conclusion 9

Bibliography 10

Introduction

In today's global market share, companies need to set up internationalization strategies in order to achieve their expansion. Globalization is pushing brands and businesses across borders, testing the ability of companies to achieve in foreign markets the same success they've experienced within their home country.

Nike, Macdonald, L'Oreal, Microsoft, Coca-Cola… are the most famous companies in the world. These multinational companies are present in most of the countries in our planet.

However, globalization does not mean multiplication or reproduction but adaptation. What made the success of these famous MNC's primarily is their capability to adapt their products to different markets. It is clear that an American, a European, an African and an Asian do not have the same needs. Adapting to the behavior of each country is essential for a successful multinational implantation. Walmart will not contradict this issue because there have been so many difficulties in Japan due to their lack of domestic market.

Despite this, more and more companies want to export, but the gloomy and slow economy force them to find new sources of revenue in developing countries. It is much more difficult for international companies to initiate their company in developed countries because they are more at risk due to the corruption, unstable policies, and cultural gap. Even if it is risky, MNC's still want to learn how to achieve success by going global.

But the expansion of MNCs not only affects their own success, but also the global trade climate. Even if borders are shrinking, countries get impacted by the success or the failure of their international firms. Protectionism,

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