Multinational firms play an important role in economic globalisation. Identify
MULTINATIONAL COMPANIES AND THE CHALLENGE OF GLOBALIZATION TABLE OF CONTENTS INTRODUCTION MNC AND ECONOMIC GLOBALIZATION GLOBALIZATION AND EMERGING PROBLEMS THE CHALLENGE ARISING FROM THE DIFFERENT ORIENTATIONS TO WORK CONCLUSION REFERENCE INTRODUCTION A multinational company (MNC ) is defined as company that owns or controls its productions or service facilities in more than one country In plain words , a multinational company not only owns (partly or jointly ) a branch or productive facilities outside its country . A few examples of such companies can be Ford , BMW , and Coca-Cola etc
MNC AND ECONOMIC GLOBALIZATION
GLOBALIZATION AND EMERGING PROBLEMS
THE CHALLENGE ARISING FROM THE DIFFERENT ORIENTATIONS TO WORK
A multinational company (MNC ) is defined as company that owns or controls its productions or service facilities in more than one country In plain words , a multinational company not only owns (partly or jointly ) a branch or productive facilities outside its country . A few examples of such companies can be Ford , BMW , and Coca-Cola etc
According to an estimate 200 MNC control about one third of global production and half of the world economic units are multinational companies . There are only 14 countries whose GDP exceeds to the turnover of Exxon . The world top 100 MNCs own about US 2 trillion assets outside their home countries , which form about a quarter of world stock in foreign direct investment (FDI . The recent wave of mega-mergers has made many MNCs much larger and powerful than ever increasing their power many fold
The MNCs have played an important role in creating globolisation . Given their international reach and mobility , prospective countries and regions often have to compete with each other to have MNCs locate their facilities as they contribute in tax , revenue , employment and economic activities to host countries (Stopford , 1998
Such development has led to globalization that refers to the worldwide economical , political and technological exchange of ideas among the states in the modern world . It is used to describe , how world is becoming economically and politically unified . The economic aspects of globalization include trade , investment and migration across the countries . Globalization believes that human being should have greater access to vast number of goods ranging from cheap labour in third world countries to bigger overseas
investments . Multinational companies invest directly in different kind of assets in foreign countries , where free migration allows individuals to find employment in areas , where there is labour shortage (Soysa 2003
Globalization and internationalization increase opportunities for cross-cultural contact
Despite all the benefits MNCs are foreign companies setup in a foreign cultural environments that also give rise to different set of problems and misunderstanding
The problem arises due to differences in language , values and behavioural norms , which some times leads to failed negotiation and failed investment plan . This report will initially discuss the role of MNC in economic development and then look up at problems in terms of socialization in the wake of globloization
MNCs AND ECONOMIC GLOBALIZATION
The history of MNCs coincides with the rise of globolisation , which is a non-linear process . It was the eve of Word War I , which spurred the entrepreneurs and firms to drive the manufacturing and production at global scale . However , the true global economy started to take place between 1950s and 1970 , which was initially resisted by the Communist bloc , but the Japan economic miracle made it possible to drive the global integration of capital and commodity throughout the world (Geoffrey , 2005
MNCs are the most powerful institutes in the...
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