Question

What makes a firm truly 'global' in its outlook?

Answer 1

A global corporation is derived from the base term 'global,' which means all over the world, also known as a global organization. It makes sense to say that a multinational company is a organization that does business worldwide. There are not many businesses in the world who can boast that every major country has a company presence. In fact they will possibly be numbered on both hands' fingers. Therefore, the global concept of a company should be a little more indulgent in accepting this reality, which would encourage more businesses to call themselves global businesses.To be a global company, you need to attract people who live in another country not only to your goods but also to your business. To find out which country is your best option for expansion and how to introduce yourself, you need to conduct essential research. You'll probably have to send some of your staff to that country to speak to people face-to-face and experience the country first-hand, before you decide if the country is right for your company.

Many multinational businesses, including the Hilton and Hyatt Hotels, Adobe, Cisco, 3 M, Monsanto, and American Express, also exist. Such companies range from hospitality to tech and manufacturing enterprises. That demonstrates that there are several types of global corporations. In a strictly physical context, some are not global. Consider internet giants Facebook and Google, which have an internet connection presence in nearly every country in the world. Their presence is more tangible than virtual, but global.

By expanding your company into another region, your customer base is growing along with that. The U.S. market could be full of products just like yours. However, you might find this is not the case in a different country. That could present an opportunity for your business to grow. What your consumers in the U.S. are familiar with may be new for consumers in another country.

If the production or labor costs in another country are lower, exporting to another country would allow you to save on your operating costs. That can boost the bottom line. In reality, cutting operating costs is a key reason so many global companies are growing. If you are selling a seasonal product that experiences fluctuating demand at various times of the year, then you can extend to countries with seasons opposite to those in your base country, allowing you to have high sales figures all year round.