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  • Essay / Global Strategies for Multinational Corporations

    Global expansion has become a tactical imperative for almost every large organization and managers of multinational corporations (MNCs) have much to do in developing, monitoring and modifying these strategies. Internationalization is an important factor in helping organizations become globally competitive. As we know, trade and barter have existed since primordial times and trade has become global. As Cateora, Gilly, and Graham (2013) describe, “a large portion of all consumer products—from automobiles to tableware—sold in the United States are manufactured abroad” (p. 7). Additionally, many American companies sell goods. overseas to our foreign nations. The development of global markets has been determined by consumer needs. If a national nation cannot provide what the consumer wants, this creates an opportunity for nations to provide the desired goods. Could our country produce all the goods necessary for the demand of domestic consumers? Between 1970 and 2005, the value of U.S. merchandise imports grew much faster than domestic production. These imports increasingly come from developing countries. Indeed, over the past thirty years, the share of total U.S. imports from developing economies has increased from 8% to nearly 40%. (as cited by Kemeny & Rigby, 2012, p. 1-2).Achieving Competitive AdvantageThere are several actions you can take to achieve competitive advantage. Productivity plays a major role in a country's ability to trade globally. The more output produced in less time by one country compared to another gives the country a comparative advantage. Competitive moves can also create competitive advantage. An example is when Komatsu started making paper in the middle to end Samsung's "rule". Economic times. Retrieved from http://articles.nomictimes.indiatimes.com/2013-04-30/news/38930222_1_sony-india-panasonic-india-samsungNike unethical business practices. (2011). Retrieved from http://entrepreneurawards.org/2011/12/nike-unethical-business-practices.htmlSerban, E. (2012). Strategic alternatives for emerging market entry strategies of multinational companies and their main investments in Romania. Revista de Management Comparat International, 13(2), 337-347. Tangen, K. (2011). Business Student Overseas Travel to China and India: Enriching the experience not only for students but also for 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