Global Strategies for the Multinational Corporation

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Global expansion has developed a tactical imperative for nearly all large organizations and multinational corporation (MNC) managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. As we know, trading and bartering have been around since primordial times and trading has become global. As described by Cateora, Gilly, and Graham (2013), “a huge portion of all consumer products – from automobiles to dinnerware – sold in the United States is foreign made” (p. 7). In addition, many U.S. corporations sell goods overseas to our foreign nations. The development of global markets was established by the needs of the consumer. If a domestic nation cannot supply what the consumer wants, this gives opportunity to the nations with the supply of the goods desired. Could our nation produce all the goods required for domestic consumer demand? Between 1970 and 2005, the value of U.S. merchandise imports has grown far more rapidly than domestic output. These imports increasingly originate in the developing world. Indeed, over the last thirty years, the share of total US imports from developing economies increased from 8% to nearly 40%. (as cited by Kemeny & Rigby, 2012, p. 1-2). Gaining a competitive advantage They are several actions to take to gain a competitive advantage. Productivity plays a major role on a nation’s ability to trade globally. The more production produced in a less amount of time from one nation versus another gives the country the comparative advantage. Competitive moves can also create a competitive advantage. An example is when Komatsu started manufacturing h... ... middle of paper ... ...nce to end Samsung ‘rule’. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2013-04-30/news/38930222_1_sony-india-panasonic-india-samsung Nike unethical business practices. (2011). Retrieved from http://entrepreneurawards.org/2011/12/nike-unethical-business-practices.html Serban, E. (2012). The strategic alternatives for emerging markets entry strategies of multinational companies and their main investments in Romania. Revista de Management Comparat International, 13(2), 337-347. Tangen, K. (2011). Outbound travel of business students in China and India: Enriching the experience not only for students but also for the international communities. Journal of Management Policy and Practice, 12(2), 120-133. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/876865204/fulltextPDF/141848A793F73C00C0D/7?accountid=28180

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