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The illustration of the phenomenon of the born global firm

 The illustration of the phenomenon of the born global firm
The born global firm basically refers to a business venture who from initial period of its business tries to derive potential competitive advantage from the resources used in the production process and selling output in various companies (Case Study 1). The top management authority from the very beginning of their business thinks the whole world as their market place. They always try to provide the best quality product among their other competitors. The market strategy for the entrepreneurship is very much aggressive for the born global firms. These kinds of firms majorly provides specialized, customized and personalized product thereby creating a niche market for themselves.
 The role of the born global firms in international business and its growing importance to the business leaders
In the international business, a lot of firms compete in the world market. However, according to the business strategy, they differ from each other a lot. Hence, the business leaders must know the differences between the other companies and the born global firms, so that they can handle their business strategically. The international business activities majorly comprise integration of the various marketing plans, the entrepreneurial skills, the capability based thinking etc. The businessmen must know about these activities. For example, in case of born global firms, it expands its business from the start up times and generally they adopt a large scale production technique. As a result, they are not much worried about the national demand of their product. Rather, they are more concerned about the taste and preferences of the international market which they target to capture.
b) Globalization and born global businesses are highly related to each other. One is the cause of emergence of the other. Both the emerging globalization and the born global businesses share some common issues with each other. Here, the issues found in the article have been briefly discussed.
 Trade barriers are totally removed from most of the European economies of western countries. There each of the companies from domestic to international all of them competes with each other according to their potentiality.
 The emerging industrialization as well as modernization caused globalization in the eastern economies like India, China. This indirectly helps the born global firms of the European countries to get a global market for performing their business.
 It has also been observed nowadays, that the regional integration like NAFTA and the European Union has massively increased, which made easy for a born global firm to expand its business internationally (Case 1).
 The growing integration in the global financial market has made the born global businesses more effective in the emerging economies. When the European countries would suffer from debt crisis, the born global firms of those countries were much concerned to expand their business initially in the developing economies so that they can give potential threat to their American rival in the global financial market.
Q.2. The smuggling business is growing rapidly among the spiritual Syrian people. The migration policy of the Europe has enhanced this more severely in this country. The socio economic condition of the country and the inefficiency as well as instability has made smuggling a growing business among the refugees coming from Greece, Sweden etc. The network of their business is very strong and the method they follow for executing any action is technologically very advanced. Basically, the educated unemployed people of the country of Syria mostly join in this smuggling business. More specifically, they are trying to grow their network more strongly among the refugees.
 Focal Firms
Focal firms imply that kind of business entities, who basically initiate, conceive, design and produce the goods and services, are specifically intended for consumption. The smugglers are the business entities in Syria who openly advertise for their businesses in the social sites and the media centre.
 Distribution Channel intermediaries
There is ample number of intermediaries found in any kind of business. In this analysis, the Syrian smuggling business is also no exception. It is very much well organized. One of the important intermediaries is an agent who works as an independent individual for networking the business in the broader market.
 Facilitators and the governments
The government of Syria is very much inefficient. The major reason behind this is the political instability which exists in this country. It makes the country more corrupted enhancing the smuggling business more rapidly.
Q.3. Porter’s diamond model majorly attempts to explain the competitive advantage a country earns over the other countries for the availability of certain resources so that the people of the country can access more beneficial economic situation. The model is framed by Michael Porter to explain the competitive advantage of the nations (Dunning 7-15). The model is basically used to explain the competitive advantage that Ethiopia acquires in the garment industry. The interlinked factors which enable the country to get competitive advantage are discussed below in the context of Ethiopia.
 Firm strategy, structure and rivalry
It has been found that the country has been chosen for most of the apparel companies for procurement of their goods. According to a report of McKinsey, 2012, the apparel goods procured in Ethiopia each year worth 70 billion dollars thereby, becoming the first country among the African countries to achieve this level.
 Demand conditions
The consumer’s demand for cheap but comfortable clothes has made the apparel business successful for the companies like VF and PVH (Case 3).
 Related supporting industries
Ethiopia is now becoming the business destination for the upstream and downstream industries too, which can ameliorate the situation.
 Factor conditions
These are basically human and physical resources. The human resources here refer to the cheap labor. The physical resources include the availability of low cost power sector.
 Government
The government has built an industrial park solely for foreign investors.
Q.4. Me: Hi Jack, have you heard the lecture of Pope Francis on the anti-globalization bastion?
My Friend: Hello. Yes, I have. It is quite convincing.
Me: Is the Pope on fleek…that globalization is pretty much a bad thing?
My Friend: Not really, but he has majorly emphasized on the negative impact of globalization on the lower middle class and the poor people of the society.
Me: Oh! Do you support the views that Pope has shared?
My Friend: Yes. It cannot be denied actually.
Me: Why do you think so?
My Friend: It has been widely found across the world that, as much as the various economies are getting integrated, the inequality of distribution of wealth increases among the poor people.
Me: What do you mean by this unequal distribution of wealth?
My Friend: Here, I have used the term in a broader sense. The availability of more choices than before has broadened the market for the people, who have the money to afford for those choices. The poor people remain poor. That is why the parity in the purchasing power is getting affected.
Me: Yes, that is true. In fact, it is generally said that the globalization has increased the employment opportunities in the emerging economies. However, this is not true always.
My Friend: Why? Employment opportunities have increased a lot in the developing countries where labor is an abundant production input.
Me: Yes, but this is only for the educated unemployed. The poor people who cannot avail proper education due to monetary constraint are still suffering from unemployment problem.
My Friend: Unfortunately, the globalization in the education system has also made it costly so that the common people cannot afford it.
Me: I think that is why Pope has called for the globalization of hope.
My Friend: Yes, we the common people should have to be more cautious about what we should adopt from abroad and what we should not.
Me: Yes, you are absolutely right. The common people must have taken some responsibility to save their country from the negativities emerged due to globalization.


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