Recent events in the Soviet Union together with anticipated changes in the European Common Market have caused many U.S. firms to consider becoming global in nature. In the global arena, a firm's competitive position in one nation significantly affects (and is affected) by its position in other nations. Rivals compete against each other on a truly worldwide basis. Successful global firms create competitive advantages by combining certain advantages created in their home countries. These advantages include economies of scale, the ability to serve multinational customers, and a transferable brand reputation. An important question is how effective will U.S. firms be in developing a global competitive advantage?
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