Globalization: The process by which businesses develop international influence or start operating on an international scale, driven by trade and direct investment, leading to interconnected markets and industries worldwide.
Internationalization: The expansion of a company's operations across national borders through trade (exports/imports) and direct investment (building or acquiring assets abroad).
Multinational Corporation (MNC): A company that operates in multiple countries, often with subsidiaries, manufacturing plants, or offices outside its home country, leveraging international resources and markets.
Comparative Advantage: The economic principle that a country should produce and export goods and services it can produce most efficiently, based on its resource endowments, and import those it produces less efficiently.
1. What is globalization in the context of industry impact?
2. What is the primary distinguishing feature of a Multinational Corporation (MNC)?
3. What is the primary role of internationalization modes in global business strategy?
Competitive advantage — national environment?
Depends on resources, industry clusters, demand, and rivalry.
Globalization — definition?
Process of worldwide business interconnectedness.
Internationalization — modes?
Trade and direct investment.
Internationalization — expansion method?
Cross-border operations via trade and investment.
Globalization — industry impact?
Expands markets, increases competition, shifts industry leadership.
MNC — role?
Operates in multiple countries, leveraging international resources.
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