1. Globalisation promotes cultural exchange and integration and builds bridges for the flow of technology and science and technology, and it improves the economies of developing countries while lowering costs.
2. increased income inequality and reduced employment opportunities in the location of the parent company
3. global strategy: firms offer essentially the same products and services in multiple countries in an attempt to gain a competitive advantage by achieving uniformity across the globe.
Example: Apple mobile phones
Advantages: maintain brand image, parent company has strong control over branches, easy to manage
Cons: Lack of local adaptability
Multi-domestic strategy:
Adapt products and services to the market needs and local culture of each different region.
Example: McDonald's
Pros: adaptability, quicker integration into new markets
Cons: High costs, product inconsistency leads to more complex management of the parent company
Transnational strategy:
Trying to find a balance between global uniformity and local adaptation.
Example: Coca-Cola
Pros: enjoy the economies of scale of globalisation while adapting to local markets by adjusting products
Disadvantages: complex management, high costs, slow decision-making process