Essay on Global Trends
Globalization has triumphed since the last century after the end of the cold war in the late 1980s. It has made extensive efforts to unify the world’s economic order, created tremendous benefits for the countries that participate and is the …show more content…
In addition to the three objectives, the firms that decide to invest internationally also face other challenges that are identified in the Integration-responsiveness framework. The central challenge that most companies face while expanding internationally is that of maintaining the balance between global integration of activities and local responsiveness. Global integration refers to managing the firms’ activities across nations to achieve global efficiency, synergy and taking maximum advantage of similarities across nations. On the other hand local responsiveness is the effort of responding to specific needs of consumers in host countries.
Based on the strategic choices and the balance of the Integration-Responsive framework, managers have four basic strategies at their disposal namely
• Global standardization strategy