Final answer:
Glocalization is the strategic fusion of globalization and local adaptation that multinational corporations employ to maintain a strong global image while respecting local identities, like the Coca-Cola brand adapting to different cultures and languages.
Step-by-step explanation:
Globalization and Glocalization Defined
An organization with a strong global image, yet maintaining a robust local identity, exemplifies glocalization. This concept merges the idea of globalization, which is the spread of products, technology, information, and jobs across national borders and cultures, with the local adaptation to maintain cultural identities within a global context. Multinational corporations may collect capital internationally and conduct business irrespective of national borders, all while playing a critical role in the global economy. These corporations, like Coca-Cola, are often at the forefront of globalization, commonly using global branding strategies while adapting to local cultures and languages as a business tactic.
The ability to balance global reach with local relevance is particularly important in avoiding xenophobia, which can arise from globalization's international division of labor, pitting high-wage labor in core nations against low-wage labor in peripheral nations. To mitigate such risks, corporations might "Americanize" their products to appeal to local sentiments, even if these products are made elsewhere. Thus, the concept of glocalization becomes significant for businesses aiming to maximize profits by blending in the global with the local, ensuring relevance and acceptance.