In the context of firm expansion, the word global is used that is used to represent a multinational corporation i.e., MNC. The multinational corporation is, however, a company operating in two or more countries, and leveraging the worldwide environment for approaching distinct markets in order to generate revenue (Shah, Hussain, Yusaff & Hussain, 2012). However, these global operations are performed in consequence of the strategic potential, which is provided by the technological advancements, making novel markets a profitable and opportune pursuit in the sourcing of production and attaining growth.
Globalization in perspective of firm expansion is the assimilation of firms, people of world and government. Globalization usually results due to strong relation in the international trade i.e., bilateral trade agreement (Smith &White, 1992).Globalization may be defined as the integration of the world's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements.
It is possible for the organization to globalize the elements of its organizational operational strategy and still retain its unique domestic pattern. The companies are globalizing their marketing efforts and operations, and this approach towards globalization is expected to provide greater yield. There are multi-domestic companies having established their businesses around different countries and the geographical areas (Buckley & Gauri, 2004). The major strategic decisions regarding technology and products are made at the head office, and the initiative for the implementation of marketing strategies is given to the subsidiaries operating locally in the countries (McDonald & Burton, 2002). But, it is quite essential for the international companies operating in different countries to follow the local culture, customs and traditions that are prevailing in the country of operation otherwise failure will result (Welch, Benito, & Petersen, 2007).
An example of this fact is McDonalds, a company having its headquarters in America but is operating globally. McDonalds have not considered the customs and tradition in India, and introduced beef burger. Indians have criticized this act of company, because they consider cows as sacred, and the company has to face various legal suits that have negatively contributed to the company’s repute (Rao & Krishna, 2009).
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Welch, Lawrence S., Benito, Gabriel R.G., & Petersen, Bent. (2007). Foreign Operation Methods: Theory, Analysis, Strategy, Edward Elgar Publishing, Inc., Massachusetts, USA
Rao, V.S.P., & Krishna, V Hari. (2002). Management: Text and Cases, Excel Books, New Delhi.
Shah, Fayaz Ali., Yusaff, Dr. Rosman Md., Hussain, Altaf., & Hussain, Jawad. (2012). A Critical Review of Multinational Companies, Their Structures and Strategies and Their Link with International Human Resource Management. IOSR Journal of Business and Management, 3(5), 28-37
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Buckley, P.J., & Ghauri, P.N. (2004).Globalisation, economic geography and the strategy of MNEs’. Journal of International Business Studies, 35(2), 81-98