Word Count: 2660
Technology is a huge part of today’s society and it is helping the world come together in many ways. Because of technology, and what it is capable of, our world is becoming globalized. Because of globalization, multinational corporations are quickly changing how they do business and this is impacting how financial management is conducted. For a better understanding, this report will discuss the pro’s and con’s that technology has on the globalization of multinational corporations, as well as how it is changing MNC’s financial management. First, the definition of globalization.
Definition of GLOBALIZATION
: the act or process of globalizing : the state of being globalized; especially: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets (Merriam-Webster)
With globalization, multinational corporations are capable of many things - more so than ever - and technology is helping them greatly. With world of business having so much access to technology, these financial markets are able to integrate with each other to help boost the global economy. Italy can trade with China, China can trade with Mexico, and the list is endless. But not only are goods traded throughout the world but now investments, currencies, and many more can be traded around the world. The reason goods and services have become so globalized is because multinational corporations are making “efforts to source inputs and locate production anywhere in the world where costs are lower and profits are higher.” All of this helps the global economy become better and better and is also changing the way corporations work.
Now, the d...
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