inostrani kapital kao faktor razvoja zemalja - Ekonomski fakultet u ...

Products and technologies which were in the past innovation hits in the world
became interpreted, copied and widely accepted. The time lag needed for product
to be imitated has shortened, so that there is more standardization of products of
high technology level.
Majority of most successful multinational companies have started their
globalization process by creating some kind of advantage in their host country,
based on products, processes or marketing and in the later stages they have used
the same advantages in the world market. Those companies have improved on their
advantages gained on host market by using the opportunities of the whole system
of the world market.
Now-a-days multinational and global companies are defined according to the
characteristics of the industry and type of competition they operate in. Industries
are ranged from multinational to global. The industry in multinational (ie. trade,
insurance, banking) when its competitions are multinational. Companies in these
industries have their products and services designed according to consumers’ needs
and they are specific for every national market. Industry is global (ie. airlines,
automotive, electronics, tourism, tires) when rival companies directly compete on
all world markets, and especially on key markets for the products, with minimal
adjustments of the product for specific local demand if it exist. Competition is
global when national markets are closely related and when leading companies
compete on most or all world markets. In global industry, company competitive
position on one market influences and it influenced by competition from all other
countries (5, pp 191, 192).
Factors determining weather industry is multinational or global are:
• need for integration and coordination of activities and
• need for responsibility
If the need for coordination is strong and a need for local responsibility low,
that industry will tend to become global. If the need for local responsibility is
strong and a need for coordination weak, that industry will tend to become
multinational. Between these two extremes there are many industries with
characteristics of both multinational and global industries.
The role of national economic policies is weakening as a result of growing
international interdependence, especially in smaller countries. Electronic transfer of
information including stock exchange listings and intra-bank transfers makes
national economies vulnerable and more influence on decisions made out of their
countries.
Holders of globalization are sub-national corporations, not only in production
and trade, but as well in the process of globalization of information transfer (6, p.
54-55). These corporations need peace, order and environment which they cannot
provide on their own since they do not have political power. They have the capital,
high technology, know-how, markets and finances. National governments have to
provide order and stabile political environment, legal and monetary system and
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