LIBERTY UNIVERSITY
BUSI 303
Globalization and Culture
I decided to write my first discussion on the key term “Global vs Domestic business” one of the
bigger topics from chapter one. I initially was drawn to this topic because I love learning about
what the best way to do something is at all times in regard to business. Global business is the
transaction of goods and services between countries where as domestic business operates in its
home country and does not export or import anything to other countries. The textbook touches on
how these two different business models have differences and similarities. One similarity that
doubles as a difference within this topic is the scope. The scope of a company is the area that the
company services, but the difference is that a business operating on a global scale has a much
larger scope. In the past American business’ have had a lot of success when it comes to going
global and pushing their products globally by way of the ever-progressing technology.
“Multinational corporations (MNCs) are embarking on a digital transformation of their global
business processes to improve competitiveness and profitability (Mithas et al., 2017).”
(Ekman,Thilenius,Thompson,Whitaker, 2020). While I believe that both global and domestic
business have their own reasons for doing things for the benefit of the company, I do see a trend
that the global market will continue to progress more digitally because it is being forced to by
other globalized companies. To speak to that point here is an example of a company that
provides new tech to global businesses. “International Business Machines Corp. (IBM) sells a
wide range of products, including information technology (IT) services, cloud and cognitive
offerings, and enterprise systems and software. It has operations in more than 175 countries and
competes with hundreds of companies ranging from small businesses to large multinational
corporations. Major competitors include Alphabet Inc. (GOOGL), Cisco Systems Inc. (CSCO),
Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Oracle Corp. (ORCL), Salesforce.com
Inc. (CRM), and Hewlett Packard Enterprise Co. (HPE).”(Johnston, 2020). I found it very
interesting how this compared to that of domestic business that just has to service a specific area
and how they both have the ability to be up to date on technology but that it is more necessary
when the company operates globally. Netflix is an example of a company that operates globally
entirely via the internet. “Netflix is in over 190 countries and has more than 200 million
subscribers worldwide. Half of its new productions are based outside the U.S., with roughly 38%
of its new content being non-English. Executives have bet big on international growth in recent
years, and it’s paying off; Take “Squid Game”, for example, the Korean drama that’s generated
$900 million in value and only cost $21 million to make.” (globalEDGE Blog, 2021).
References
Ekman, P., Thilenius, P., Thompson, S. and Whitaker, J. (2020), "Digital transformation of
global business processes: the role of dual embeddedness", Business Process Management
Journal, Vol. 26 No. 2, pp. 570-592. https://doi-org.ezproxy.liberty.edu/10.1108/BPMJ-02-2019-
0080
Johnston, M. (2020). Investopedia Stock Analysis - Valueclick: How IBM Makes Money:
Software, Global Business, Tech Services. Newstex.
globalEDGE Blog - globalEDGE: Streaming Companies are Going Global (2021). . Newstex.
