Final answer:
Digital firms benefit more from globalization because of their online presence, ability to operate globally, and distribution of digital goods with minimal costs. They excel in competitive 'winner-take-all' markets and attract international talent due to competitive wages.
Step-by-step explanation:
A digital firm is more likely to benefit from globalization than a traditional firm because of its inherent advantages in connectivity and scale. As globalization and communication technology advance, the degree of competition increases. Digital firms, with their online presence, are better positioned to manage multiple operations across the globe, seek out new markets, and respond rapidly to changes in market demands. This capability to effortlessly cross geographical boundaries can lead to a larger customer base and increased revenue.
Moreover, the nature of digital goods and services, such as software or entertainment, makes them ideal for globalization, as they can be distributed globally at minimal additional cost. Companies like Microsoft and Amazon have showcased the 'winner-take-all' markets where large firms dominate due to their online supremacy. Additionally, multinational corporations can offer competitive wages and attract talent from different locations. All these factors make the digital firm more adaptable and competitive in a globalized world.