Global Companies

There are two different types of companies, one that is based off market building strategies and the other that is based off cost-minimizing strategies. Companies that use the cost-minimizing strategy are usually much more globally affiliated than the companies that use the other strategy. This is because they take advantage of employees in different countries that do labor for much less than minimum wage in America. This causes the overall profit of the company to increase because they are not spending as much as it on employee salaries, unlike a market building strategy. A market building strategy has part of their focus on supporting the economy of their country. They do this by having jobs for Americans instead of workers in other countries. An example of a company with a market building strategy would be Ford, and one for a cost-minimizing company would be Nike.