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Global Communications

Submitted by jrmiller on November 7, 2006

Category: Business
Words: 959 | Pages: 4
Views: 153
Popularity Rank: 74,265
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Introduction
The feature of the global economy is not the flow of goods, but the flow of capital, people, and information worldwide. With Globalization, time and space is no longer a barrier to making deals in the world. Computer networks permit instant transactions. Along with the increasing speed of transactions and global sourcing of all forms of resources and information, managers are struggling to think globally and act locally ( Rivette 2000).
As the markets become more open; as evidenced by free trade agreements between nations-, more foreign firms are likely to enter domestic markets, thus increasing competition. Since firms are operating in global markets, competitive moves in the domestic market may negatively affect the firm in another segment of the international market. Such increasing amounts and types of competition place pressure on firms to move into international markets in order to maintain their competitiveness in areas where they already operate (Atkinson 2000). Globalization requires intellectual capital as a source of comparative advantage as evidenced by W.W. Grainger headquartered in Lake Forest, Illinois.

Background Information
W.W. Grainger, Inc. a globally minded fortune 500 company is the leading supplier of industrial products serving businesses and institutions throughout North America with roughly 600 locations. Grainger recently expanded into Mexico and China to source and sell its products. Grainger's decision to go global in this manner reflects the intellectual capital the firm maintains. Knowledge has become the direct source of comparative advantage for selling its products. Grainger's path to success has included global expansion to Mexico and Canada. In recent years, it has entered the Mexican and Canadian markets to both sell and source its products. It has done so by establishing sophisticated distribution networks throughout both countries. In both countries, Grainger...

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