From Local Roots to Global Reach: How SMIC Fuels Economic Globalization

Word Count: 678

A world without globalization is a trap that would halt the dispersion of knowledge

and close the doors for discoveries, causing a decline in innovation and a plummet in its

economy. Globalization is a multi-faceted phenomenon (Brazalote, 2023). Simply put,

this specific circumstance can occur or take place in the most diverse methods. In the

context of the economic world, the term is used to define worldwide integration through

the distribution of products, services, capital, and access to foreign resources, such as

raw materials and labor markets, while ensuring returns (Lutkevich, 2021). In the

Philippines, SM Investments Corporation (SMIC) is a global Filipino corporation

operating through subsidiary entities such as retail, banking, and real estate

development.

Becoming a prominent conglomerate in the Philippines, SMIC significantly

contributes to and benefits from economic globalization. Delving further into the

corporation's fulfilled duties in foreign direct investment (FDI), it has made its way to

venture into foreign markets that provided opportunities for growth and diversification.

An example would be its extension into the Chinese market through joint ventures and

investment in the construction of malls (Francia, 2019). Moreover, the efforts of SMIC

for international market expansion are evident. Considerably, in neighboring countries

like China, the corporation's commitment to tapping into new consumers beyond

domestic borders displays. By means of expanding into different markets, it engages in

cultural exchange and localization efforts by adapting to local preferences and

demonstrating its understanding of the diverse cultural nuances across. Additionally, the

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corporation's capacity to partner with several multinational companies allows

globalization to take place in the country, making way for innovation, development, and

an experience of other nation's goods and services. For example, SMIC partnered with

one of Japan's largest retail companies, Uniqlo, to set up Fast Retailing Philippines Inc.

(FRPI) (Garcia, 2012). The relationship between the two built the largest flagship store

in Southeast Asia in Manila (Soliman, 2018). Hence, SMIC's proactive engagement in

economic globalization through foreign direct investments, international market

expansion, and cultural localization underscores its role as a global Filipino corporation

that contributes to the interconnectedness of economies in the global landscape.

Global corporations are highly significant in globalization, creating multiple

avenues in reshaping the international business landscape. SMIC's international

expansion initiatives have improved trade and investment flows between the Philippines

and host nations. The corporation promotes economic cooperation and integration by

establishing a presence in international marketplaces, which makes it easier for goods,

services, and capital to move across borders. Furthermore, as SMIC expands into

international markets, it continuously supports micro, small, and medium-sized

enterprises (MSME). With 90 operating malls, the corporation becomes a marketplace

for over 90,000 MSME partners, helping them navigate a platform to render products,

grasp entrepreneurial skills, and further establish their businesses (China Daily, 2023).

Thus, this move creates job opportunities, stimulates local economies, and contributes

to the overall development of others. Simultaneously, the corporation benefits from

exposure to various technological advancements and practices that can enrich its

operations and contribute to the technological progress of the countries it operates in. In

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essence, SMIC's significance within economic globalization lies not only in its

contribution to the interconnectedness of economies but also in its embodiment of the

potential and aspirations of global Filipino corporations.

The importance of economic globalization is in the provision it can give its

consumers, presenting an array of options and increasing competition so others can

produce cost-efficient and finest-quality goods (Heakal, 2023). Being one of the largest

global Filipino corporations, SMIC is a significant bridge that connects the country to

others, allowing globalization to take place and positioning itself as a notable contributor

to this phenomenon. By demonstrating that a corporation can transcend national

borders and flourish internationally, SMIC sets an example for other Filipino businesses,

encouraging them to accept the challenges and opportunities presented by

globalization. SMIC's adaptive strategies, commitment to innovation, and cross-cultural

engagement stand as a testament to the potential of corporations to bridge nations,

cultures, and economies. Like any other global corporation, SMIC's efforts and far-

reaching influence have visibly shaped the global economy and impacted nations on

multiple fronts.