THE EMERGENCE OF BORN GLOBAL FIRMS

Individual Assessment

Questions

1. What are the main characteristics of born global firms?

Born global firms are those firms which seeks to engage in international business to have a
competitive advantage in terms of the use of the factors of production and the number of people that
they can reached to be able to promote and sell their products or services offered. In this case, they
can have a low cost of production and sell more which results in earning more profit for their
business.

2. What drivers and causes of globalization have allowed born global firms such as
Instagram to internationalize at or near their founding?

The drivers and causes of globalization that have allowed born global firms to internationalize are the
recent technological advances. With this, it would be easier for people in some country to access the
offered services. As for example, the Instagram has features that coincide with the global shift to a
more visual style of communication. In this case, lots of people would actually try and experience how
the Instagram works because it is trend and as what most of the entrepreneurs believes “Trend is your
new friend”. Also, because of the technology the internationalization of an enterprise would be easier
and convenient in terms of promoting the said service.

3. What advantages do you think a young company can gain by entering international
markets soon after its founding?

I think the advantages that a young company can gain by entering international markets soon after its
founding is that due to the recent technological advances it have now made venturing abroad much
less expensive. In this case, the young company can have less cost of production but still can reached
more potential consumers. Also, they can specialize a product category for which demand is universal
wherein it will result into increasing of the demand of their products internationally since it can
operate globally. With this, their flexibility and agility to serve will help them to treat their foreign and
domestic customer way better.