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Definition

Global firm

Definition (1):

The global firm refers to a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. The global firm sees the world as one market. It minimizes the importance of national boundaries and develops global brands. It raises capital, obtains materials and components, and manufactures and markets its goods wherever it can do the best job.

Definition (2):

A global firm means a firm operating in more than one country around the world. It is a domestic firm’s opposite that operates in just one country. These firms are also called global companies or multinational firms, or multinational corporations, or multinational companies, or MNCs. A firm expands its business beyond the domestic borders for becoming global and having greater access to a wider consumer base and revenue returns. Additional certain motives can include:

  • Having access to less competitive markets.
  • Having access to resources and talents unavailable in its home country.
  • Acquiring new sources of capital to use in the expansion of the business.
  • Diversifying the uncertainties and risks available in functioning in only one country.
  • Grabbing the opportunities of the open markets that are available with key business competencies.
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