THE GLOBALIZATION OF MARKETS
The article pointed out the importance of globalization in business, and how it differs from being multinational. When we heard of the word multinational and globalization, we typically perceive it as they are synonymous. This paper addressed how the two became different to one another.
The setup of multinational is vastly different to globalization. The article metaphorically referred them as the fox and the hedgehog. The fox being multinational who “knows a lot about a great many things”, and on the other hand, the hedgehog representing globalization who “knows everything about one great thing.” The fox or the multinational one tends to be adaptive doing business overseas or beyond borders towards the differences of each nation. Meanwhile, the hedgehog or the global corporation attracts to its custom by knowing the similarities about the different countries.
Multinational firms caters made-to-order, customize and very accommodating to several countries. The set-up can be costly higher in this way; where as, the global company can be more economical because it is standardized. Standardize in essence is not plain and boring but in a sense of homogeneity. Globalization, as standardized will get your customers across nations to avail what you are offering. Standardization can be repetitive; which I would think it is quick to master. In a learning curve, the methodology and practice is observed consistently. With that, I remember what Bruce Lee said that: “I am not afraid of a man who knows a million ways of kicking and done it once; but I am afraid of a man who knows only one kick and done it a million times.”
Globalization is increasingly getting price competitive and efficient in aspects of manufacturing, logistics, marketing and management. The article mentioned that “high quality and low cost are not opposing paths; such that they are the necessary compatible identities of superior practice”. The premise behind the...
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