If a company makes and sells products all within the same country, using products produced in that country then the company is typically referred to as a domestic company. Global companies are generally defined as companies who, through the course of acquiring materials, creating products, and selling products do some kind of business with a company in another country.
This is a very broad idea of what a global company is. Global companies do business with other parts of the world. Some would define a global company saying that they must have a presence in two or more countries. The debate however, is what counts as ‘having a presence’? Simply purchasing materials or products in another country won’t necessarily make a business “global” but visiting another country and conducting sales and business there might constitute referring to a company as “global”.
With the growth of the internet more businesses have the opportunity to become global companies. As that occurs the definition of what a global company is, is shifting. Many agree that to earn the title of a global company or global business a company must operate in many countries, not just two. If a product is made in one country and shipped to another country they will frequently be referred to as a domestic company who ships internationally.
It would seem that in the age of the internet every business would go global, conducting sales around the world. However, that is not the case. Only about 1% of American companies have foreign operations. Companies don’t have to go global but as your business grows you will be inclined to reap the benefits that come from building a global business.
