Thecompani

est
hatar
eact
ivei
nint
ernat
ional
busi
nessar
ecal
l
edmul
ti
nat
ional

ent
erpr
ises.Mul
ti
nat
ional
ent
erpr
isei
sanent
erpr
iseorcor
por
ati
ont
hatownssubst
ant
ial

r
esour
cesandper
for
msv
ari
ousbusi
nessact
ivi
ti
est
hroughanet
wor
kofbr
anchesl
ocat
edi
n

di
ff
erentcount
ri
esandeachbr
anchf
ormi
tsbusi
nessst
rat
egy
,basedont
hedi
ff
erentmar
ket

char
act
eri
sti
cs(
Cav
usgi
l
,Kni
ght
,&Ri
esenber
ger
,2008)
.Mul
ti
nat
ional
companyi
sbasedi
n

onecount
rybuthasbusi
nessact
ivi
ti
esi
nsev
eral
count
ri
es.Ther
ear
eopi
nionst
hatt
he

mul
ti
nat
ional
companyi
sonet
hati
ssost
ruct
uredt
hatconduct
sbusi
nessorpr
oper
tyhel
din

manycount
ri
esoracompanyi
sor
gani
zedi
ntogl
obal
product
ionpar
ts.

Ther
easonswhyacompanybecomesamul
ti
nat
ional
,Ansof
fsepar
atest
het
wo

cat
egor
ies(
Ansof
f,1984)
:

•Oper
ati
onal
needs:
prov
idi
ngmat
eri
als,
equi
pment
,technol
ogyandr
eleaseof

sur
pluspr
oduct
ion;

•St
rat
egi
cneeds:
ensur
ingt
hei
nvi
olabi
l
ityoff
utur
echangesi
ntheext
ernal
env
ironment
,st
eadygr
owt
h(mai
ntai
ninghi
stor
icpat
ter
nsofgr
owt
h,av
oidi
ng

st
agnat
ioncausedbysat
urat
ion,
incr
easi
ngt
hev
olumeofbusi
ness,
incr
easi
ngt
he

r
ateofgr
owt
h)andbet
terpr
ofi
tabi
l
ity
.

Thedev
elopmentofi
nter
nat
ional
busi
nessact
ivi
ti
escoi
nci
dedwi
thwi
despr
ead

phenomenonofgl
obal
i
zat
ionofmar
ket
s(Cav
usgi
l
,Kni
ght
,&Ri
esenber
ger
,2008)
.The

gl
obal
i
zat
ionofmar
ket
sref
erst
othegr
owi
ngeconomi
cint
egr
ati
onandt
hegr
owi
ng

i
nter
dependenceofcount
ri
eswor
ldwi
de.I
nter
nat
ional
i
zat
ionoft
hecompani
esr
efer
stot
he

t
endesncyoft
hecompani
est
osy
stemat
ical
l
yincr
easet
hei
nter
nat
ional
scopeoft
hei
r

busi
nessact
ivi
ti
es,
whi
l
egl
obal
i
zat
ionr
efer
stoamakr
otr
endi
ntensi
veeconomi
crel
ati
ons

bet
weent
hecount
ri
esi
nthewor
ld.Gl
obal
i
zat
ionencour
agescompani
est
oint
ernat
ional
i
ze

andt
osubst
ant
ial
l
yincr
easet
hev
olumeandt
ypesofcr
oss-
bor
dert
ransact
ionsi
ngoods,

ser
vicesandcapi
tal
.Al
so,
thegl
obal
i
zat
ionl
eadst
orapi
ddi
ssemi
nat
ionanddi
ff
usi
onof
pr
oduct
s,t
echnol
ogyandknowl
edgei
nthewor
ld,
regar
dlessoft
heor
igi
n.

Thepr
ocessofgl
obal
i
zat
ioni
sanat
ural
processt
hati
sar
esul
toft
hegr
owi
ngand

accel
erat
edpr
ocessofgener
ali
zi
ngoft
hechar
act
erandpr
ocessofpr
oduct
ion.The

dev
elopmentofsci
ence,
engi
neer
ingandt
echnol
ogyandt
heexpansi
onofmar
ket
sfor

goods,
wor
ldwi
de,
leadt
oint
ernat
ional
i
zat
ionofeconomi
candf
inanci
aldev
elopment
sand

t
hei
rgl
obal
depl
oyment
.Ifgl
obal
i
zat
ioni
sunder
stoodasapr
ocesst
hatl
eadst
ogr
eat
er