The Internationalized Corporation: An Executive's View

Abstract

Rapid and extensive internationalization of business is perhaps the single most important trend in modern commerce. Decentralization of worldwide political power—the waning influence of the United States and the Soviet Union relative to the growing importance of new nations and area groupings, plus the emergence of innovative international economic instruments—is stimulating the international business environment. In addition, the modern revolution in communications and transportation is facilitating the spread of business and enhancing prospects for improved cooperation. A continuing struggle is evident in efforts to reconcile the ways of the international firm with the often disruptive political and economic policies of the nations in which it attempts to operate. Internationalization of all factors of corporate operation can be seen as a basic step toward ameliorating this situation. Forces now at work make it probable that the number of firms operating internationally will increase significantly in the near future. It is also apparent that more medium-sized firms will join the ranks of the multinationals, more will have non-U.S. bases, and more will operate in the service sector. Eventually, truly world-oriented corporations with world-oriented incentives will evolve. These are foreseen as an effective force not only for better cooperation in the business world, but also as a force for peace among nations.