The Importance Of Globalization In International Business

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The world we live in today cannot be explained without talking about globalization. For example, people can easily get any information on the internet, can contact someone on the other side of the earth, and even can go to another countries freely at lower costs. The world is changing incredibly fast and no one was able to imagine this over hundreds years ago. According to Thomas Friedman, globalization can be defined as “the inexorable integration of markets, nation-states, and technologies… in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.” Especially when it comes to business, the boundaries are fading away and globalization is an important…show more content…
Firstly, let us examine the statement of Nolan to gain a broader view on today’s international business. In this statement, Nolan argues that firms from developing countries have less power to change the situation of the world business and cannot fully involved in significant changes in the global market. However, this does not take into account the fact that the global market is actually changing. This is the main reason why I cannot agree with Noran’s statement fully, and by changing it means the global landscape is no longer only consisted of multinational companies from developed countries, it is also of domestic market leaders from emerging economies. According to Mathews (2002), by the end of 1990s, there were over 60,000 firms operating internationally. These firms of course include traditional multinational enterprises (MNEs) such as the GMs, IBMs, Siemens and Unilevers which have vast resources and operations in more than 100 countries. However, also they do include smaller firms from developing countries which have passionately pursued internationalization over the past decade and gradually acquired global reach. There are several firms from late-developing countries such as Li&Fung from Hong Kong or the Hon Leong Group from Singapore and Southeast Asia that could be good examples, and let us focus on Acer from Taiwan
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