Globalization usually refers to a stage in which the firm’s operations are managed on a
global scale, not in just a few selected countries. It is characterized by the worldwide
integration of ever more competitive markets and companies facing global competition.
Traditional exports are increasingly coming under pressure while the conditions for
marketing and production are changing rapidly. As a result, today’s companies, including
SMEs, have to respond to markets at an increasingly faster pace (Pleitner, 2002).
Globalization also includes the functional integration of geographically dispersed
economic activities. It means something more in terms of the scope, content and intensity
of mutual connections, capital and management involvement (Svetlicic, 1996) and is
therefore a qualitative extension of internationalization (Gjellerup, 2000).