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Running Head: ALI BABA
1
Ali Baba
Name
Institutional Affiliation
Date
ALI BABA
2
“Born global” firm
A born global firm is a business that from its inception derives competitive advantage
from the use of its resources and selling off its output in many countries. Ali Baba group began
in 1999 as a website that intended to connect Chinese manufacturers with buyers in other nations
(Ali Baba Group, n.d). Right from its onset, Ali Baba was meant to serve consumers on a global
scale and not on a local level. Therefore, owing from the definition given, I would consider Ali
Baba a born global company.
Overcoming Psychic Distance
The psychic distance concept brings about differences between a businesses’ domestic
environment to foreign ones generating uncertainties amongst decision makers which can
discourage diversification. Ali Baba deals with this issue due to its presence in many countries.
Ali Baba overcomes th...
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