Competing in a Global Marketplace
Fundamental changes are occurring in the very nature of the private business enterprise as it responds to the threats and opportunities of the global marketplace. Even the firm most oriented to domestic business is increasing its geographic reach as its suppliers and customers are, with increasing frequency, located on a variety of continents.
As the intensity of global competition increases, many companies are forced to reevaluate their niche in the world marketplace. For some companies this entails strengthening their domestic position against competing foreign products. Other firms respond by aggressively expanding their operations into foreign markets. For many, collaborative agreements with other businesses are an effective alternative to the more traditional approaches. These partnerships -- which can extend to strategic alliances -- may be viewed as intermediate positions between a focus on domestic markets and full-scale global operations. 1
The modern enterprise is increasingly developing multinational networks composed of alliances, affiliates, licensees, and other partnerships. Mergers and acquisitions often involve crossing national boundaries -- and dealing with two or more national governments, as well as with a variety of state, provincial, and local authorities.