Critically evaluate the evolution of MNEs responses (i.e. strategies, structural forms, etc) to the challenges of globalization.

The age of globalization enables businesses to move their operations offshore with the minimum of fuss . For example , businesses in the West are moving en masse to China to take advantage of the low cost of production there . China has the largest reserve of manpower in the world . As a result , the cost of manpower in China is one of the lowest in the world . This enables businesses from the west to keep costs down If it had not been for the process of globalization and China joining the World Trade Organization as

a result of that process then the massive economic opportunities arising out of China 's meteoric rise to economic excellence would never have emerged (Naughton 2005 ,

. 56 Because wages and salaries are very high in the West , the mature economies of the West are stagnating and not generating enough demand Rather than generating demand for traditional goods and services , these advanced economies are creating new patterns of demand that require companies to constantly innovate on their product lines (Hill 2005 ,

br 121 . The innovation is mostly in the form of differentiation , cost minimization and quick response . Companies that can differentiate their products , that can prices their products less or that can deliver customer wants quickest are the ones which can survive . That is why competitive rivalry in the West is intense . It is not easy for the management of businesses limiting themselves to the mature economies of the West to reduce the cost of their operations...