About this site
GLOBESTRATEGY© was developed in 2013 by Suresh George to support a global strategy course at Coventry University. This website curates open educational resources (OER) useful for learning global strategy and International business. Read more
Demystifying Global strategy
Global strategy, as defined in business terms, is an organization’s strategic guide to pursuing various geographic markets. It consists of the Global Business Environment in which Global corporations, Multinationals and other firms operate. It introduces a concept of international strategy and gives some reasons why do companies go international like the Five keys to going global.
Reasons for having a global strategy
Companies using a global strategy may achieve economies of scale to improve margins or low price points. Other primary strategic reasons for globalization are to build supplier relationships, to improve access to raw materials (unique to a given region), and to cut costs by relying on other regions’ specializations.
The History of Global Strategy studies
As an interdisciplinary subject, a student of GS studies should look at (a) the Firm either in its domestic historical setting or its global interactions, (b) The history of global empires and their global interventions. (c) The historical cultural mosaic behind global strategy created by movement of people, goods and services, and (d) Global strategy thinking from the world of ancient philosophical literature.
(a) The rise of the (Global ) business firm
It looks like the first firm structure was created in India in either circa 500BC or circa 800 BC. The Shreni was an informal association of artisans, merchants and Traders. It could have also been a workers guild Some claim that this structure also included a form of governance code and social institution that may have been a vehicle for charitable acts. By 960 AD, China had started developing business mechanisms to control the flow of capital. However the oldest surviving global firm is a French Mint .
Moving to the subject of Ancient city states who built their wealth on trade, one can find some support for the export and import of commodities in the city state of Troy. There is evidence of extensive fishing activity 1000 – 500 BC, by civilizations centered on the Mediterranean Sea: the Phoenicians, Minoans, Egyptians, Assyrians, and Greeks. Here, fish is caught, traded, and marketed as part of a fishing enterprise.
(b) The history of global empires and their global interventions.
There are those who argue that our modern economy has been shaped by the rise and fall of Global empires and the effect of imperialism. In addition to imperial power from ancient empires, there is also a growing body of work on American imperialism a term that refers to the economic, military, and cultural influence of the United States on other countries. A counter body of work lies on the topic of Soviet imperialism as distinct from the Russian Empire.Please see a chart on Backbones of International Trade that illustrates how countries/states traded over from 1870 to 2013.For many heterodox economists, in the real world, specialization and trade are path dependent. Path dependence means that history matters.
(c) International Trade Thoughts and Philosophy
A seminal work here is that of Chi-Yuen Wu who addressed the evolution of economic thought.
(d) The Philosophy of Trade
The key components of the Global Strategy landscape are composed of :
The Globalisation debate |
How Global Are We?
Importing and Exporting Export licensing decisions Doing Business Profiles of markets
Why Do Nations Trade?
Gaining and sustaining competitive advantage
The Multinational corporation |
When to Go Global? Deciding to Go International
The globalization of business
Target Market Selection
A map of the curated resources around global strategy can be viewed here. If you are looking to read more, a list of Free Textbooks is useful to start exploring the subject.
3 historical empires that had a strong impact on global trade |The Mongolian Empire |The Return of the Pirate: Post-colonial Trajectories in the History of International Law|
The Roman Empire Rome the City and the state |Colonialism and Neocolonialism| The dynamics of China-Ethiopia trade relations |