A global company is an organization that strives to haveits worldwide presence, worldwide standardized operations in one or more functional areas of the company, and advancing its operationsworldwide.A global company is now said to have more globaldifferences and it gathers much more globalized standards of its marketing,engineering, and productionfunctions than ever before. Global companies are just putting their production plants around the worldto gain the benefits of cheaper and better-educated workers to capitalize on worldwideassets more efficiently than competitors. Advances in communicationstechnologies such as Electronic Data Interchange (EDI), data exchange (time andorders) between factory and suppliers’ computers, international networks, andteleconference have enabled project teams around the world to combine ideasfrom different cultures for greater innovation.Management is also trying to remove obstacles in theircompanies so that there are free people and ideas coming in and out.
Many areoffering top-ranking positions to citizens from countries other than their homecountry. Some even refer to this newly defined global enterprise with a newname, the multicultural and multinational company. The goals of multinationalmulticultural corporations are: (1) to respond to local markets; (2) to produceand market its products worldwide; and (3) to exploit the technology on aglobal base (the exclusive goals that some companies have achieved). Althoughit has become a trend to talk about global companies as “stateless”or “borderless”, measurements with any indicators show that there isno global company. Each has its own government and tax authorities in thecountry of origin owned by shareholders primarily of a nation/state.
According to Professor Yao-Su Hu, a former World Bank economistwho writes in California Management Review, global companies are nationalcompanies with international operations. Globalcorporate management goes around the world to know the market; threats fromcompetitors; sources of products, raw materials, and finances; and labors. In other words, companieshave a global vision in which they seek to support their presence in keymarkets by Those who use the word “global” in this way define themultinational company as a type of holding company with overseas operations,where each company adapts its products and market strategies to what theirmanagers assume as the unique aspects of their individual markets looking for similarities,not differences, between markets.