s of the country in which the operation occurs (Aizenman, 1994, p. 459). At multinational companies, internal practices are also changed to reflect the environment of the various countries. The result is that multinational companies have higher relative costs associated with their international operations than their global counterparts. The particular economic and financial environment of Tunisia can help companies looking at this market determine whether they want to enter the market as a multinational or global organization.
Better communications mean that companies and countries no longer must operate facilities in all locations where business is conducted (although there may be other advantages to doing so). Telephones, FAXes and computers mean that companies and employers around the world have access to information and employees in far off locations. This has long-term ramifications for multinational and global companies.
To begin with, companies and countries can no longer operate as if the rest of the world did not exist. Countries which have pursued protectionist strategies in the past are moving away from these strategies to take a broader view of their environment. New trading blocs, based on regional, not national, interests have formed with the European Economic Community (EEC) and the North American Free Trade Agreement (NAFTA). There will be increased pressure on these trading blocs to produce results for the members as a whole, not merely for individual countries or companies.
Despite the difficulties, an increasing number of companies throughout the world are marketing on an international basis. There are two primary reasons why they do this: competition and markets. The competition facing companies domestically is increasingly from foreign firms. Americans, for example, purchase cars and electronics made in Japan, ham and golf carts from Poland and shoes from Brazil. Competition comes not only from ...