7 Myths about Business Globalization
Marten van der Zee, Analyst, Netherlands
According to Subramanian Rangan in , there are 7 myths or misconceptions about (business) globalization:
1. Any company with money can go global (you have to study foreign markets before penetrating)
2. Internationalization in services is different from products (there is no such difference in internationalization)
3. Distance and national borders matter no more (they do)
4. Developing countries have the best chances to success (if you look at investments in foreign markets, by far the most originate from developed countries).
5. Manufacture where labour costs are cheapest (even if the hourly wages are low, still the costs per unit could be high)
6. Globalization stays forever (it will not)
7. Governments donít matter anymore (as long as people give value to their own collective national identity and want local representatives to make the choices, governments are far from dismissal).
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