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