ABSTRACT
Globalization of industry refers to the transnational operations undertaken by multinational corporations. These actions are aimed at sourcing, manufacturing, marketing, financing, and organizing the development of new products. The most peculiar features of globalization are international trade, transnational investment, and cross-country alliances. A domestic globalized operation is best described by a transaction where a local firm supplies foreign firms at home. In this instance, the supplying local firm is acting as a supporting or related industry of a large multinational corporation. A limited to moderately transnational operation is the preferred form of expansion for multinationals belonging to the fast food industry. This type of transactions involves sales of corporate products through foreign intermediaries or marketing affiliates. Foreign direct investment is feasible when the relocation of manufacturing assets from the home market to overseas leads to substantial savings in manufacturing costs due to the availability of comparative advantages in the foreign country.
