Wednesday, April 7, 2010

What drives “convergence” for international firms?

Convergence is the increasing similarity of management practices in firms.  It is more apparent in transnational firms than multinational firms.

Globalization is pushing convergence for multiple reasons including global customers, growing levels of economic development, and global competition. In order for firms to remain competitive, it is an advantage to be aware of what people are doing in other foreign countries.

Transnational firms must seek to take advantage of their foreign domestic situations by assimilating into their culture.

For further information about international business, check these links: 

Advantages and Disadvantages of Globalization
Multi-Domestic Strategy and Transnational Strategy

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