Rise Of Globalization Essay

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Recommended: Chapter 1 globalization and international business

Globalization is the expansion of a business into several countries. The business owners may realize that they have a broad international market and so decide to expand their business for their products to be produced internationally in other countries (other than the founding country) so as to avoid exporting too many products and/or services. Over the years, globalization has become a major trend and most successful businesses have been globalized. Globalization has expanded rapidly due to development in factors such as communication, transportation and good management. In the following essay I shall discuss how the development in management has contributed to the expansion of globalization.
Management is a skill that takes a lot of time …show more content…

These are companies that own or control production and service facilities in one or more countries other than their home/founding country. There are four main types of multinational corporations. The first being a decentralized multinational corporation; it is a type of company with very strong home country presence, that is to say; most of the managers are citizens from the founding country. The second is a global centralized multinational corporation. This type of corporation acquires cost advantage through centralized production. Their production sites are based in countries where resources used in their production are cheapest to acquire.
The third type of a multinational company is an international corporation that builds on the founding corporation. All its subsidiaries are owned by the parent corporation. The fourth and last type of multinational corporations is a transitional enterprise that combines all aspects of the three multinational companies mentioned above.
Due to globalization, managers in multinational companies come across a lot of problems when they go to work in the establishments (subsidiaries) of the companies they work for; some of these problems include culture shock experiences, fair trade issues, and ethical issues. And the difference in managerial styles in different

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