A global firm is a company that, by operating in more than one country, manages to gain strategic advantages in research and development (R&D), production, marketing, and finance that its competitors operating only nationally cannot. These advantages arise from economies of scale and global coordination.
The advantages of a global firm are expressed in lower costs (for example, by producing in low-wage countries) and a stronger reputation built on a consistent global image. Unlike a multinational firm, which adapts its strategies to each market, a global firm strives for standardization and integration wherever possible to maximize efficiency.
