Scribd
Upload
123 views10 pages

IBT Lesson 3 Differentiating Internationalization and Globalization

The document differentiates between internationalization and globalization. [1] Internationalization refers to a company expanding into new markets through developing knowledge of local cultures and relationships. [2] It aims to utilize a company's strategic assets through subsidiaries rather than contracts. [3] Globalization refers to connecting world economies to promote free trade through standardized global products produced in a few efficient plants controlled from a central location.

Uploaded by

The sorcerer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
123 views10 pages

IBT Lesson 3 Differentiating Internationalization and Globalization

The document differentiates between internationalization and globalization. [1] Internationalization refers to a company expanding into new markets through developing knowledge of local cultures and relationships. [2] It aims to utilize a company's strategic assets through subsidiaries rather than contracts. [3] Globalization refers to connecting world economies to promote free trade through standardized global products produced in a few efficient plants controlled from a central location.

Uploaded by

The sorcerer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

LESSON 3:

DIFFERENTIATING
INTERNATIONALIZATION
AND GLOBALIZATION
According to Barlett and Goshal (2000);
Levitt (1983) and
Rugman (1982)
INTERNATIONALIZATION
PREREQUISITE CHARACTERISTICS
Knowledge about their country’s culture, Derives directly from the international product
industrial structure, government requirements, cycle theory
and other factors of doing business.

Relationships with customers, suppliers, and Technology and other knowledge are passed
regulators who are relevant. from the parent firm to the business firm to the
business operation
Superior knowledge or talents, whether it’s in Products are developed for the domestic market
advanced technology expertise or unique and then marketed abroad.
marketing skills.

Economies of scale in research and development Offshore manufacturing is considered as a way


(R&D), production, or a portion of the value for a corporation to preserve its domestic
chain. market.
INTERNATIONALIZATION (cont’d.)
PREREQUISITE (cont’d) CHARACTERISTICS (cont’d)
The company’s strategic assets must be better utilized See themselves as primarily a domestic corporation
through its own subsidiaries rather than contractual with some international ramifications.
arrangements with third parties.
Managers assigned to overseas operations are
typically misfits from within the company who speak a
foreign language or have already lived abroad.

Foreign operations decisions are frequently made on


the spur of the moment or on an ad hoc basis
GLOBALIZATION
PREREQUISITE CHARACTERISTICS
A changing operating environment with better Considers the entire world to be its unit of
transportation and communication analysis.
infrastructure and lower trade restrictions.

Developing commodities for a global market and The basic idea is that national tastes and
mass-producing them in a few highly efficient preferences are more similar than dissimilar, and
plants throughout the world, frequently at the that they may be made comparable by providing
business headquarters. customers with standardized items that offer
sufficient cost and quality advantages over
national variability.

Requires a lot more cooperation and control Produce and sell the same item, “the same way,
from the center point than others. all across the world.”
GLOBALIZATION (cont’d)
PREREQUISITE CHARACTERISTICS
Usually refers to an organizational structure in
which multiple product or business production
activities are managed from a central location.

The center is where strategic choices are made.

End to be made on the spur of the moment or


ad hoc basis
Globalization is-
-- the process of connecting the world’s
economies in order to promote free trade
and economic policies that will aid the
world’s integration into the global
community. It is the process of a country’s
economy opening up to other countries and
synchronizing its norms and regulations with
those of other countries.
Internationalization is -
-- comprises a company’s market growing
and entering new markets in different
countries. It is the process through which a
company, firm, or individual extends and
becomes a part of another country, whether
for the purpose of supplying goods,
expanding their client base, or meeting other
demands.
Finally…

INTERNATIONALIZATION - refers to a
company’s expansion into new markets.

GLOBALIZATION – is the rapid integration


of communication, finance and political
philosophy.
Thank you for paying attention…

God bless us all.

You might also like