Globalization, a vital characteristic within the modern economic environment has resulted in a number of changes to countries in terms of economic development. The expression globalization means the mixing of international and local economies into a singular unified economy. Globalization has caused the economy of many countries to rise because of international trade; however, trade could cause the economy of a country to face ups and downs which could have an effect on the working conditions, health of the workers and the quality of life within a nation.
In order to discuss globalization it is important to know the meaning of the term “multinational”. Roughly speaking, multinational companies are enterprises with headquarters in one country and affiliates in other small countries with the same types of jobs offered to employers. These firms, the ones in the smaller countries, establish abroad to gain market share, use cheaper labor and raw materials, which benefits the companies because setting up a branch in other countries especially the ones who are in the process of development is a great investment. This in fact, is useful because people who live in the Third World countries are short of jobs and are in pursuit of jobs to support their families and live a better life. So if globalization can bring a lot of benefits to people, then why some people are against it?
To begin with, multinational companies such as Coca-Cola, Nike, Dell and many more are opening up the doors to success for many countries. These companies import new machinery and, with new technology they help to increase the productivity of the company, and eventually of the country, therefore, generating high revenue. In this way, not only the country benefits...
... middle of paper ...
...dweb?index=63&did=85570662&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1302776689&clientId=19323
Norberg, J. (2008). The noble feat of nike. In G. H. Muller (Ed.), The new world reader: Thinking and writing about the global community (2nd ed., pp. 227-230). Boston, MA: Houghton Mifflin Company.
Hijzen, A., & Swaim, P. (2008). Do multinationals promote better pay and working conditions?. Organisation for Economic Cooperation and Development. The OECD Observer., (269), 15-17. Retrieved from http://proquest.umi.com.ezproxy.aus.edu/pqdweb?index=60&did=1614986281&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1302769835&clientId=19323
Hijzen, A. (2008). The social impact of foreign direct investment. Organisation for Economic Cooperation and Development. Policy Brief., Retrieved from http://www.oecd.org/dataoecd/53/8/40940418.pdf
Following the globalization, many companies in developed countries move factories to developing nations. As a multinational company, there is at least one facility in one country other than its home country. Those companies have offices and factories in different countries and usually have a centralized head office in their home country. Advocates of multinationals say they create jobs and wealth. And multinationals can improve technology in developing countries, which are in need of this. On the other hand, critics say multinational companies often barely pay employees enough to live on in developing countries, and it is unethical to pay cheap wages.
“5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,
Globalization is a series of social, economic, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. Harris 5-23. The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress.
A Multinational Corporation (MNC) can be defined as “a single entity that controls and manages group of goal-disparate and geographically dispersed productive subsidiaries” (Triandis and Wasti, 2008, p. 2). Multinational corporations are entities that make Foreign Direct Investment (FDI) and produce added value in countries other than the country in which they are headquartered. One of the key objectives of the MNC is to obtain capital where is it cheapest and to invest FDI and undertake production in areas that yield the highest rates of return (De Beule and Van Den Bulcke, 2009). However, many theories have been advanced to account for the decision-making process that MNCs undertake in relation to FDI. The purpose of this paper is to explain the two main theories – internalization theory and OLI eclectic paradigm theory – and to critique these in relation to some of the other conceptual models that have been advocated.
Globalization becomes important today because increasing in depending to the world. Globalization can be determined as increasing in trade and exchange in open economy, integrated and borderless international economy (Intriligator, 2003). Globalization is often used to refer to economic globalization. The integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Besides that, globalization also can be defined as process of greater interdependence among countries and their citizens. It consists of increased integration of product and resource markets across nations via trade, immigration and foreign investment-that is via international flows of goods and services, of people and of investment such as equipment, factories, stocks and bonds. It also includes non-economic elements such as culture and the environment.
Gone are accustomed differences in national or regional preferences... The globalization оf markets is at hаnd. With that, the multinational commercial world nears its end, аnd so does the multinational corporation… The multinational corporation operates in a number оf countries аnd adjusts its products аnd practices to each – at high relative costs. The global corporation operates with resolute consistency – at low relative cost – as if the entire world were a single entity; it sells the same things in the same way everywhere…
Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.
...orking environments for their factory employees. Even with international groups and organizations keeping a constant watch on companies who outsource work to impoverished countries, there is often little that can be done to control these companies. Lack of local enforcement and overlooked international law makes it easy for money-hungry companies to get away with morally wrong behavior. By bringing attention to these types of situations and not supporting companies who do not treat their workers fairly, executives will be hit where it hurts them the most, their pockets. When their profits decrease, they will be forced to look for alternatives to manufacture their products.
Globalization is an overwhelming trend. It is no doubt that there are many positives rise out of globalization, but equally some serious negatives brought from this trend, such as gradual disappearance of ethnic identity (Buckley, 1998). This essay is going to address some positive effects of globalization generally, and then it will focus on impacts of this trend on developing countries.
Now, before I bash globalization it is some positive I would like to discuss. Globalization is great for the American economy; we can supply the world with our goods and services, which in turn can possible, relieve the deficit we’re in. “Homegrown industries see trade barriers fall and have access to a much wider international market. The growth this generates allows companies to develop new technologies and produce new products and services.” (Buzzle) Also, globalization leads to better relations between countries when they create trade agreements. Globalization does not drain every under-developed company but brings a new era of economic change and the hope of being a world super power to certain nations. “Economic globalization gives governments of developing nation’s access to foreign lending. These funds are used on infrastructure including roads, health car...
Using 1997 financial crisis and other examples, discuss how globalization is important to the modern business journalism. Introduction
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.
Globalization is one of the main aspects in the 21st century. Globalization has brought the world closer; all the things that are happening nowadays are recognized globally even if they happened locally (Buckley). According to Nayef Al-Rodhan GCSP (Geneva Centre for Security Policy) globalization is not a single word or concept. It contains many other concepts within itself. Globalization is composed of different concepts like incorporation regarding the economics, transmitting information or understandings, stability within beliefs, and other concepts (Al-Rodhan p.3). This paper deals with the definition of Globalization, the advantages and disadvantages of globalization, and based on these information the views that to which extend the globalization is beneficial for majority of the world's population. The concept of globalization has changed the whole shape of the world. It has both its positive and negative impacts on people's life. However, by taking both the advantages and disadvantages into consideration we can find that to a large extend globalization is beneficial for majority of the world's population. With the help of globalization the works that were difficult in past is getting easier in today's environment. People are getting closer to each other, which is a product of globalization. Moreover, the knowledge and informations are being circulated in very good way which is a very good sign for having a good and prosperous life.