A former Intel CEO and senior advisor of Intel Corp, Andrew Grove stresses a great importance on international competition by stating ‘you have no choice but to operate in a world shaped by globalization and the information revolution. There are two options; Adapt or die’. Grove’s statement effectively conveys a great importance of competing in a global economy in order to for an organization to expand, grow, and thrive. As of late, international competition and trade surfaced as one of the most important aspects of organizations’ growth as many barriers have lessened between countries and to make global trade easier (Twarowska, 2013). Thomas Friedman examines influences that shape the global economy, business, and competition through case studies, interviews, and statistics in a book, ‘The World Is Flat’. He points out various factors that have resulted in some drastic changes in the global market. He discusses ten main important forces that helped shaping the current world market situation; collapse of Berlin Wall, Netscape(internet), work flow software, uploading (blogs, wikipedia, and others), outsourcing, offshoring, supply-chaining, insourcing, in-forming (ability to perform search on their own), and steroids (mobile phones, iPods, instant messaging, VoIP). Had this book been published this year, the list of the forces may have even been longer. Technology unquestionably provides invaluable tools in making international businesses and transactions more feasible than before. As Thompson and colleagues review in Crafting and Executing Strategy: The Quest for Competitive Advantage, companies can gain immensely from entering foreign markets for five main reasons. Going ‘global’ can bring them new customers, increased revenues,... ... middle of paper ... ...tudyinc.com/mcdonalds-international-innovations Nijsssen. E. May 1999. Attitdues toward the purchase of foreign products: extending the model. Available from http://people.stern.nyu.edu/sdouglas/rpubs/attitudes.html Thompson, A.A., Peteraf, M.A., Gamble, J.E., Strickland (2013). Crafting and executing strategy: The quest for competitive advantage concepts and cases (pp. 178-209). McGraw-Hill Irwin. Tse, E., Russo, B., Haddock, R. August 23, 2011. Strategy+Business. Competing for the global middle class. Available from http://www.strategy-business.com/article/11309?pg=all Twarowska, K., Sklodowska, M. , Kakool, M. Management, Knowledge, and Learning (International Conference 2013). June 19-21, 2013. International business strategy, Reasons and forms of expansion into foreign markets. Available from http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-349.pdf
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Expanding a company into foreign markets is no easy feat. A great many companies have tried over the past decades and many have learned firsthand, that in the world of trade, one has to be prepared and cautious. It is for this reason, that many have dedicated countless hours, days, weeks, months, even years, into finding successful methods. Some have done this by simply trying, and consequently failing. Others have used the data provided by the failed attempts, and the successful ones, to r...
One of the major trademarks of the twenty-first century business environment is the expediential growth of globalisation. Today’s communications, trade relations and global mutual dependence impose new and ever changing challenges on company’s strategists. The world trade has grown phenomenally as a result of globalisation. (Al-Hyari, et-al, 2011) Transportation of people and goods to all areas of the world has never been as fast and cost-effective as it is today (Pinho and Martins, 2010). Globalisation can be briefly defined as a historical process which is characterised by a growing engagement between peoples on all corners of the globe (Modelski, 2003, pp.55-59)
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Today, we are in the midst of a continuing technological communications revolution that is unprecedented in world history. The computer has contributed greatly to this, for with such newer technology as computer linkups, often by way of satellites, information is available almost everywhere in the world virtually instantaneously, in seemingly unlimited amounts, and at a low cost; that is planetary access has been achieved. In this sense, communication, abetted by better transportation of information, is continuing to make different parts of the earth’s surface more similar to each other, but now on a world rather than a national scale. These developments are likely to bring profound changes to our economies and our lives; they certainly have already made transnational corporations possible, where decisions that affect many parts of the globe are centralized in a relatively few huge corporations. The headquarters of such firms, in turn, are disproportionately concentrated in a few of the largest metropolitan are...
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