Which type of firm is considered global?

A firm is considered global when it produces products that can be sold in multiple international markets and appeals to consumers across different countries. The reason high-quality, globally sellable products are the characteristic of global firms is that these companies design, manufacture, and market their offerings to meet the diverse needs and preferences of consumers worldwide.

Global firms often have standardized products that can compete effectively in various markets, leveraging their quality to stand out from local competitors. They also tend to engage in international marketing strategies to build brand recognition and loyalty in multiple countries.

In contrast, firms that focus solely on domestic markets or produce localized products do not engage in extensive international operations. Similarly, firms that prioritize low-cost labor might not necessarily produce or target globally appealing products; their operations can be restricted to servicing specific niche markets instead of creating a broad international footprint.