Taking a Look at Globalization

Globalization:

Globalization can be seen as reduction in barriers between countries. Globalization has opened the world market for international trade. The movement of globalization have contributed to the spread of knowledge, culture, technology, and information across borders. The increasing role international expansion across border has also increased the focus of multinational corporations to international business strategies. Organizations today in developed nation or in developing nation are going international due to increase in competition. They want to expand their limits beyond local region. Competition in domestic market and pressure to expand the business are the few reasons for the globalization. The following are the few advantages of globalization.

a) No Trade Boundaries:

Before globalization it was very difficult to trade your product other countries. Post globalization it has reduced the barriers in international trade. An organization can trade their product at any part of the world. In modern multinational corporation’s sales, marketing, production is based in different country to capitalize location advantages.

b) Dynamic Work Environment:

Globalization has bought a revolution in world economy. Globalization has increased the rates of mergers and acquisition. The increase in competition between the multinational corporations across the globe has increased drastically. Work environment has changed a lot post globalization,

c) Information Technology:

Improvement in information technology is due to the impact of globalization. The one which has the best potential to change the shape of international management is the advancement of technology. An organization can operate from one end of the world to other en...

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...efore entering its market. The environment analysis of the region or country is necessary for any multinational corporation. Multinational Corporation of developed country and MNEs of developing country often tend to adapt the same strategies to enter new market like merger, takeover, alliances etc. There is no huge difference in the MNEs of developed country or developing country. MNEs mostly choose the strategy where the level of risk is very less and they can gain a competitive advantage. It has been seen that most of multinational companies is trying to take advantages of the growing economy of BRIC countries. To conclude, the unique strategies like international pricing, distribution, global marketing are the few best strategies adopted by the MNEs of emerging market because it is less risky, involves less capital investment and they give high rate of success.