ABSTRACT
The aim of this paper is to contribute to a clarification of the terms “globalisation” and “global” in relation to the waging of competition and the location of production in manufacturing industry (the service industries are not dealt with here). The most widely used definition is still the one given by Porter (1986). Porter opposes “multidomestic” and “global” industries and goes on to make three propositions regarding the latter:
“a global industry (…) is an industry in which a firm’s competitive position in one country is significantly affected by its position in other countries or vice versa” (p. 18)
“therefore, the international industry is not merely a collection of domestic industries but a series of linked domestic industries in which the rivals compete against each other on a truly world-wide basis” (p. 18) and;
“in a global industry, a firm must in some way integrate its activities on a worldwide basis to capture the linkages among countries” (p. 19).
