Internalization and Globalization
One of the most important considerations in the implementation of strategy is the extent to which the organization’’s activities are spread across geographical regions. (0) . Merchants traveled the known world to sell products manufactured in their home country and to return with products from other countries. Initially, international business simply took the form of exporting and importing. (9).
Globalization, on the other hand, is more than simply internationalization. (10). In order for a business to become global in its operations, we would usually expect a number of important characteristics to be in place. First, global organizations take advantage of the increasing trend towards a convergence of customer needs and wants across international borders.
Second, global organizations compete in industries that are globalized. (11). Third, global organizations can and do locate their value-adding activities in those places in the world where the greatest competitive advantages can be made. (12). (13). The mentality of home base, ’’foreign interests’’ that has been so prevalent among traditional multinational companies is eroded in the culture of global businesses. (14). The development of an organization’’s global strategy, therefore, will be concerned with global competences, global marketing and global configuration and coordination of its value-adding activities.
A. This might mean, for example, shifting production to a low-cost region or moving design to a country with skilled labor in the key skill cultural differences.
B. In some sectors, successful competition necessitates a presence in almost every part of the world in order to effectively compete in its global market.
C. Finally, global organizations are able to integrate and coordinate their international activities between countries.
D. Finally, global organizations can cooperate with each other very well and can exchange their information in time.
E. They have learned to effectively manage and control the various parts of the business cross national borders and despite local area.
F. A large multinational company is not necessarily a global business.
G. The term international describes any business that carries out some of its activities across national boundaries.
H. Some businesses are entirely domestically based, others operate in many countries and yet others in almost all the regions of the world.
EXAMPLE：The correct answer for blank (0) is [H].