The alternative to the Globalization strategy is dubbed as 'Glocalizatjon'. The objective of glocalization is to establish a geographically concentrated inter-firm division of labour in the three major bonding blocks. Manufacturers strive to build their competitive advantage in a combination of vertical de-integration of production to local supplies and sub-contractors. And structural control over local suppliers, dealers, workers, and governments. As Glocalizatjon aims to establish production within the major markets international trade may decline. Glocalizatjon pertains to a company's attempt to become accepted as a local citizen in a different trade bloc.
Glocalization also leads to the concept of global firms meaning that large firms cease to be national firms. Therefore, they can be treated as stateless Corporations. It is argued that time has not yet arrived to think of global firms. This is for a number of reasons.
(a) Even the large multinational corporations are still tied to apparent country
(b) The ownership and control of the firm is still retained by the parent firm. Me subsidiaries profit accrue to the parents
(c) There are very few non-nationals on the boards of parent company
(d) The legal nationality of the parent firm is still the nation state where it is registered
(e) In most cases technological activities are concentrated in the parent company.
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