It is the result of growing incorporation of economies in the world, predominantly through the movement of labor, technology, knowledge, services, merchandise and investments across international borders. Globalization also has a direct effect on the social, environmental and political aspects of the economy (ibid). Enhancement in technology is the key driving force of globalization. Advancement in technology especially the growth of internet and telecommunication infrastructure has facilitated an easy method of communication and conducting business globally and creating global markets. Moreover the interconnections of economies will increase both opportunities for the business and competition among them.
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.
Transnational Business and its Role in Contemporary Society Multinational business enterprises have had a big impact on the global economy over the years because of their operations in many countries. This has meant that these businesses have had a major influence on investment patterns and economic activities globally because of their wide branches of networks that defy geographical and political boundaries (Meteer, 2004). The multinationals have been forced to improve their business processes within the locations they operate in collaboration with their employees at designated locations. Meteer (2004), argues that such organizations have been forced to allocate resources for improvement of processes through effective structures in which employees and management teams can collaborate to facilitate improvement of procedures. These initiatives help Multinational Corporations to evaluate their participation in formulation of policies across their branches globally.
Globalization assists in the diminution or eradication of constraints by States in relation to exchanges across borders. Further to this, the said diminution and eradication of State border constraints kindles an increase and integration of multifaceted global systems of production. This has ultimately led to improved levels of exchange of goods and services. Thomas Friedman is of the opinion that globalization is a growing phenomenon and with that will have enormous influence in the business organization and practice just like globalized trade, outsourcing, supply chaining and political forces have had in the past (Friedman, 2008). Globalization can thus b... ... middle of paper ... ...sto.com Friedman, Thomas L. (2008).
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