1.

Define the following:

1.1 Internationalization - is the process of tailoring a product, service or operational offering

for entry and growth into international markets. Globalization may be the ultimate end goal,
but internationalization helps your business get there.

In ecommerce, internationalization means getting a business to a place where it can

successfully trade in different markets. This is typically achieved with a targeted international
website and supported by localized promotion and digital marketing strategies.

Source: https://www.thgingenuity.com/resources/blog/what-is-
internationalisation#:~:text=Internationalization%20is%20the%20process%20of,helps%20your
%20business%20get%20there.

1.2 Globalization - is the process by which a business brings its brand to the rest of the world
and is the end goal that a company aims for with its internationalization strategy.

The globalization process involves establishing a physical presence in different locales. This
often includes the employment of global talent to assist with this, as well as the development
and deployment of technology, innovations, product development and production across
multiple countries.

Source: https://www.thgingenuity.com/resources/blog/what-is-
internationalisation#:~:text=Internationalization%20is%20the%20process%20of,helps%20your
%20business%20get%20there.

1.3 Global Firms - refers to a firm that, by operating in more than one country, gains R&D,
production, marketing, and financial advantages in its costs and reputation that are not
available to purely domestic competitors. The global firm sees the world as one market. It
minimizes the importance of national boundaries and develops global brands. It raises capital,
obtains materials and components, and manufactures and markets its goods wherever it can
do the best job.

Example: Nestle, and Procter & Gamble

Source: https://the-definition.com/term/global-firm

1.4 Transnational Firms - operates globally but without a centralized system, means each firm
in respective country have its own management which is the decision-making body. As
understanding and addressing customer needs, wants and desires in their own country of
residence and beyond and in borderless cultural contexts with the help of synergies emerging
across national boundaries and transfer of expertise and advantages between markets where
the organization operates transnationally with a transnational mentality supported by
transnational organization structures and without compromising the sustainability of any
target markets and resource environment offering satisfactory exchanges between the parties
involved.

Example: McDonald’s and Jollibee

Source:
https://www.researchgate.net/publication/288829270_Transnational_Marketing_and_Transna
tional_Consumers#:~:text=It%20defines%20Transnational%20Marketing%20as,advantages
%20between%20markets%20where%20the
 https://mbainsimplewords.com/multinational-corporations-vs-transnational-corporations/

1.5 Multinational corporation - is a type of company that operates in multiple countries with a
centralized management at the headquarters at the home country. It is a company that does
business in a select few countries around the world and operates facilities such as warehouses
or distribution centres in at least one foreign country. Although the company does business in
other countries, its primary focus is the domestic market.

Example: Coca-Cola

Source: https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-
guides/glossary/multinational-corporation#:~:text=A%20multinational%20corporation%20is
%20a,focus%20is%20the%20domestic%20market.

https://mbainsimplewords.com/multinational-corporations-vs-transnational-corporations/

2. Article Title: Marketing as Service-Exchange: Taking A Leadership Role in Global Marketing

Management by Robert F. Lusch Stephen L. Vargo Alan J. Malter