1 Write down the difference between international Vs global business? And what are the benefits of globalization? • Write down the difference between international Vs global business • What are the benefits of globalization?
Difference between international Vs global business
| Strategy | International | Global |
| Location | Selected target countries and trading areas | Most global businesses operate in North America, Europe, Asia Pacific, and Latin America |
| Business | Custom strategies to fit the circumstances of each host country situation | Same basic strategy worldwide with minor country customisation where necessary |
| Product-line | Adopted to local culture and particular needs and expectations of local buyers | Mostly standardised products sold worldwide, moderate customisation depending on the regulatory framework |
| Production | Plants scattered across many host countries, each producing versions suitable for the surrounding environment | Plants located on the basis of maximum competitive advantage (in low cost countries close to major markets, geographically scattered to minimise shipping costs, or use of a few world scale plants to maximise economies of scale) |
| Source of supply of raw materials | Suppliers in host country preferred | Attractive suppliers from across the world |
| Marketing and distribution | Adapted to practices and culture of each host country | Much more worldwide coordination; minor adaptation to host country situations if required |
| Cross country connections | Efforts made to transfer ideas, technologies, competencies and | Efforts made to use almost the same technologies, competencies, and |
| capabilities that work successfully in one country to another country whenever such a transfer appears advantageous | capabilities in all country markets (to promote use of a mostly standard strategy), new successful competitive capabilities are transferred to different country markets | |
| Company organisation | Form subsidiary companies to handle operations in each host country; each subsidiary operates more or less autonomously to fit host country conditions | All major strategic decisions closely coordinated at global headquarters; a global organisational structure is used to unify the operations in each country |
