Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
from China goes to Wal-Mart. This made Wal-Mart China’s eighth largest trading partner. Governments, businesses, communities, and individuals in countries around the world face both challenges and opportunities as a result of rapidly expanding economic globalization. Changes in a country’s economy can happen very quickly and can deeply affect people and institutions. The fact that Wal-Mart is a company not even a country; and is China’s eighth largest trading partner; just makes us realize how much economic growth depends on businesses to produce more goods and services faster and more efficiently.
Firstly the development of TNC’s in countries. Tesco is a major TNC and in 2004, its first stores opened in China. This would bring lots of investment into China which would create many jobs, and access to new technology. Overall TNC’s would increase countries GDP. Also China is a NIC (newly industrialised country).
With current successful operations in Hangzhou, China, Riordan now has plans on continually expand its manufacturing operations in China. Although it may sound and potentially be a swell idea, there are many political risks that Riordan Manufacturing will have to overcome. The number one political risk Riordan will be faced with will be government interference due to being a foreign company. The major interferences can be from nationalization of industries through asset confiscation, currency inconvertibility, to contract repudiation with respect to government owned firms. Just these three political interferences could eventually seal the fate of Riordan Manufacturing operating abroad.
The United States market is filled with many businesses that offer related products. Globalizing brings a lead to organizations because it gives the companies opportunities to cultivate and add to success of the
Current Business Research Project Paper RES/341 June 26, 2012 Dr. John Olmstead Current Business Research Project Paper In the past, business only stayed within one’s country. Because of the advancement in technologies, there are an increase number of businesses, which sell and buy products and service from oversea companies. This paper will define the purpose of the research read in “Qualitative Methods in International Sales Research: Cross-Cultural Considerations”. It will also investigate the business problem, identify the data collection method, and conclude the results of the research. Define Research Purpose The international sales research is important to the marketing and sales team that works in companies that sell products and services to overseas countries.
Money is what makes the world turn and it’s exactly what china has. China primarily gets its money from its huge exporting business all over the world. Everywhere you see it says made in china it was made and bought from china giving them more money. Not only has this but America owes china a lot of money from are “issues” that we had and they could pull this card anytime they want and ask for their money. This money could be used to fund next generation equipment for their military technology and even for society.
To increase global connectivity, there are several factors included. Development of technology can increase global connectivity. Also, telephones provide communication and increase the network of global connectivity as firms can contact other countries where other firms are based. This provides a wider network. The internet provides more communication, and allows firms to operate annually.
Railroads are considered to be a symbol of national unity because they connect places within it, and of economic progress since they open new commercial areas. Railroads opened new areas to commercial farming and creating a national market for manufactured goods. Extremely important was the fact that railroads divided the nation into the four time zones still used today. Self-made men were men who came from low origins but manage to become business leaders who accumulated enormous fortunes and economic power. For example, Carnegie was an immigrant who after hard work established the “vertical integration” steel company.
In other words, “immigrants bring innovative ideas and entrepreneurial spirit to the U.S. economy.” (Griswold, 2002) Compared to the 1900s, Chinese immigration in the United States of America had transformed from 3% to almost 55% today. Chinese immigrants brought different set of skills and helped the nation built railroads which became one of the most valuable assets that America had used to build up the economy. According to US Patent and Trademark office, only 268,782 patents were signed by US origins compared to 274,033 of patents signed by immigrants in 2012 (PTMT, 2013).This strongly suggests that economic and technological improvements are brought up by the immigrants. “Twenty-five percent of engineering and technology companies started in the past decade were founded by immigrants” (Wadwha, 2007). Over the years, high percentage of Indian immigrants ruled the technological companies for they are highly talented in engineering and exceptionally smart in Math.