This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

1. Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that supplies a product or service to an MNE. How might your relationship change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations? MNEs in Globalization 2.0 had copies of themselves in key countries, which required direct investment, but allowed for greater responsiveness to a countrys specific circumstances. There was little communication between the smaller locations and the headquarters. MNEs in Globalization 3.0 act differently and similar to MNEs in Globalization 2.0. The differences though are huge. MNEs now have smaller locations all over the world and not just in key locations. The reason this can occur is due to the optimal level of cost, capabilities, and PESTEL factors. The communication is stronger because each location has a self-contained operation and is part of a hub in the global network. Relationships are now stronger and people rely on one another more heavily due to the amount of information made available on the internet as well as the now time attitude. MNEs cannot survive running off of a Globalization 2.0 strategy. They need to adapt and join the ever growing MNEs cannot survive running off of a Globalization 2.... View Full Document

End of Preview

Sign up now to access the rest of the document