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Global challenges

Part 1

Nowadays the activity of corporations on the world-scale is highly dependent on the development of Globalization . The latter attributes to world economy new features . At the moment , the world is perceived as the environment of interconnected and complementary to each other national economies , as a global market , which integrated national and regional markets in one market environment . Globalization impacts world economy and ultimately global corporations in different ways . It creates both opportunities that corporations can take advantage of , as well as challenges that are to be

fought with

The main global issues that have shaped the world due to globalization and ultimately affect the multinational corporations are

The growing influence of International Organizations

The resource driven economies of developing countries

Financial Globalization

The process of regional integration of world economy

Thus , we see that the key players on the global markets are MNCs International Organizations , and national states . Yet , due to the process of regional integration and globalization itself , the role of national government is gradually fading away . The bigger and bigger responsibility is delegated to the official authorities of integrated countries (for instance , European Commission in the European Union Moreover , it is absolutely necessary to mention that the level of globalization of a particular country is measured by the level , to which its national government is able to take decisions independently Unfortunately , the level of Independence of National Governments is really diminishing . Yet , besides regional integration there exist another factor influencing this process - International Organizations Among the most influential organizations , the primary focus is on the world financial institutions established by Bretton Woods system (they are also referred to as Bretton Woods Institutions ) and trade regulation organization , such as WTO and UNCTAD . The most influential Bretton Woods Institutions are , certainly World Bank and IMF . The first aims to contribute to the overall development of the countries , including both macro- and microlevel . IMF is mostly concerned with the balance of payments and the stability of national currencies . However , the alarming tendency that is spoken about in every national economy is that both WB and IMF are the players who represent solely the interest of rich countries . As for the developing countries , they only contribute to their further degradation . It is IMF who was blamed for crisis in Argentina and Brazil . This kind of thoughts is caused by the fact that World Bank and IMF provides their credit lines only on completion of certain conditions . Very often , those conditions are not beneficial for national economies . However , the latter are not asked . Thus , those Bretton Woods Institutions do not consider the peculiarities of economic development of each country and primarily use the model developed by rich countries , even if it is not applicable . For example , Ecuador is considered to be the country with the biggest debt -- 16 billion . The quarter of annual national budget goes to pay off the debt to IMF However , it is not likely that Ecuador will pay it off in another 10-15 years...