Hw10 - 1 (MNEs). ....

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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? MNE’s in Globalization 2.0 had copies of themselves in key countries, which required direct investment, but  allowed for greater responsiveness to a country’s specific circumstances. There was little communication  between the smaller locations and the headquarters. MNE’s in Globalization 3.0 act differently and similar to  MNE’s in Globalization 2.0. The differences though are huge. MNE’s 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.  MNE’s cannot survive running off of a Globalization 2.0 strategy. They need to adapt and join the ever growing 
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This note was uploaded on 03/01/2013 for the course BUS M 498 taught by Professor Rogermccarty during the Spring '11 term at BYU.

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Hw10 - 1 (MNEs). ....

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