Multinationals: Globalization’s Offspring

Scrappy new multinational firms are emerging all over the world: Hindalco and Tata from India, Lenovo and PetroChina from China. “Just as Toyota and Samsung eventually obliged western multinationals to rethink how to make cars and consumer electronics, so today's young thrusters threaten the veterans wherever they are complacent,” notes this article in “The Economist.” The new firms are agile, pursuing talent and markets all over the globe, including developing nations. IBM responds to emerging competiton, not by setting up miniature replicas of its company all over the world. Instead, IBM ignores geographic boundaries and places operations wherever they can best be performed. As a result of the new competition, multinational corporations are quickly shedding nationalistic tendencies, and instead embrace talent, knowledge pools, flexibility and innovation from any location as hallmarks of global success. – YaleGlobal