Global International Strategy

According to (Levitt, 1983; Yip 2003), global strategy involves a particular form of multinational enterprise (MNE) strategy that treats countries around the world as a common, global marketplace. Global strategy as viewed by (Peng 2006) encompasses strategy of firms around the globe, which is firms’ theory about how to compete successfully. The definition explicitly incorporates both international (cross-border) and non-international (domestic) firm strategy.
An exclusively indigenous firm is faced with complex environment when it decides go beyond own borders by going international. This absolutely new environment it entered is more complex in its economic, cultural and political dimensions; as well as the various dimensions of uncertainty

In the light of this, it can be inferred that an increased cultural distance may lead to higher levels of complexity and uncertainty for managerial decision-making, which heats up the managerial risk (Shane et al. 1995). Generally, cultural distance has been adopted to explain a wide range of multinationals strategies and organizational characteristics (Tihanyi et al. 2005). (Hennart and Zeng 2002; Thompson 1996) for example posited that cultural distance has been used to explain why joint ventures between different countries are typically shorter lived than those between firms from the same country
One current debates stemming from the broad debate of culture and institution, is whether cultural distance or institutional distance is a better measurement for multi-national enterprises in the international market. While cultural distance involves the study of principal differences in national cultures between the home countries of MNEs and the host countries of their operations (Johanson and Vahlne 1977; Kogut and Singh 1988). Institutional distance describes

It is a British multinational mobile network operator headquartered in Newbury, England. It has a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States. Vodafone is a real European “single-market” company with operations in 14 Member States and partner arrangements in the rest. The company also has a significant global presence, currently has operations in 31 countries and partner networks in a further 40 countries. With a total of 341 million customers in the world, of which 125 million are in Europe, the company has expanded its international portfolio through a mixture of Company's global strategies of subsidiary undertakings, joint ventures, associated undertakings and