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