1. What are the main characteristics of born global firm?

The born global firm is defined as a business organization that, from inception, seeks to derive significant
competitive advantage from the use of resources and the sale of outputs in multiple countries. In due course,
these distinctive firms are gradually becoming the norm among companies that do international business.(S.
Tamer Cavusgil and Gary Knight., 2009; Born Global Firms). One of the characteristics is born-global firm has
internationally oriented management. Since born-global firms originated internationally, the firms already have
the knowledge of how to manage internationally, which makes them more comfortable with the risks of
international business and more competitive to operate internationally. In addition, born-global firm emphasizes
innovation and good quality of services or products. Born-global firms are often ahead of their competitors in
being innovative and having good-quality products or services in their type of industry. Born-global firms have
high activity in international markets from or near the founding, target multiple countries, and normally begin to
export their products or services after a few years or near the founding, as this will help the firm start
internationalization and collaboration with different foreign markets. Through these steps, born-global firms can
expand their products and services by leveraging the resources in other countries. Furthermore, they have
limited financial and tangible resources in general. Born-global firms are small to medium enterprises.

2. What driving forces and causes of globalization have allowed born global firms such as Spotify to
internationalize at or near their founding?
Born-global firms such as Spotify were able to internationalize due to these driving forces. The first is the
worldwide reduction of barriers to trade and investment, market liberalization, and free trade. When Spotify was
founded in Sweden in 2008, after a few months, they launched in multiple countries around Europe, such as
Finland, France, Norway, and Spain. In addition, they also established operations in the UK and US. This only
proves that the reduction of barriers to trade and investment and market liberalization can help global firms
internationalize, as they can establish their businesses in many countries through direct investment. The second
is industrialization, economic development, modernization, and advances in technology. Nowadays, we live in a
world of technology, and Spotify has taken advantage of it. As most people now use smartphones, it is easier for
them to advertise their services as a music streaming company, and it will be convenient for customers to listen
to music anywhere and anytime. Most of the born-global firms took advantage of the technology to be able to
internationalize and establish their businesses. In addition, industrialization, economic development, and
modernization play a big role, as these are the factors that determine whether a born-global firm's businesses
will survive and grow. Lastly, there is the integration of world financial markets. Spotify is a growing small-
medium enterprise, and since most of the born-global firms are SME, they have fewer financial and human
resources. However, through partnerships with Coca-Cola and Vodafone, they were able to advertise their
services worldwide.
 3. What advantages do you think a young company can gain by entering international markets soon after
its founding?

- One of the advantages of entering international markets is building a substantial global presence and
increasing business growth. If a young company starts to internationalize soon after its founding, they
can access new markets, which will lead to a wider range of customers and collaboration in other foreign
markets. In addition, companies can take advantage of the skilled workers that they can hire in the
foreign country, as this might help financially. It will be beneficial to a young company to
internationalize as it can be more effective in a global market for staying ahead of their competitors. If a
young company establishes their business internationally at an early stage, they can have wider visibility
than their competitors do. By expanding internationally, this can be a big help for the business as they
can have early access to newer technology and faster development. In addition, businesses can have
access to local talent and skills, which can help them stay ahead of the competition.

Sinead, November 2019. The Advantages and Disadvantages of International Expansion

https://capital-ges.com/the-advantages-and-disadvantages-of-international-expansion/

Richnicole E. Ignacio, 2023. Globalization of Markets and the internationalization of the firm.
S. Tamer Cavusgil and Gary Knight, 2009,.Born Global Firms: A New International Enterprise (New York:
Business Expert Press,), 1.

Stoyan Tanev, March 2012. Global from the Start: The Characteristics of Born-Global Firms in the Technology
Sector https://timreview.ca/sites/default/files/article_PDF/Tanev_TIMReview_March2012_0.pdf