This helps to improve balance of payment. 7. The growth of MNC's in the host country will increase level of industrial and economic development. Advantages of MNC's for the home country 1. . MNC's create chance for marketing the products produced in the home country throughout the world.
Due to the large advancements in technology and increased political and economic relations, developed countries have benefited immensely from globalisation through higher living standards, decreased unemployment rates and national growth and development. But is globalisation working? There’s good argument that globalisation has made the world a better place. New medicines have been invented helping to avoid many life threatening sicknesses, within minutes we can have access to news from the other side of the globe, we can now travel from country to country within a few hours and ship goods from around the world. It has also benefited many developing nations by providing them with food resources, financial aid, education programs and disaster relief.
Tesco Stability - Stable economic conditions for Tesco means that they can make better informed decisions because there is more stability within the economy. If the economy in the UK is stable, Tesco’s are likely to have a higher turnover and be profitable therefore at a time like this Tesco may wish to introduce new lines, perhaps expand or find a city or town where they may wish to introduce new stores. Tesco suppliers will also benefit from this as they are supplying Tesco with more products and it will give them an idea if they need to increase their rates of production. If the economy is more stable then there will be steady growth in GDP, steady levels of employment and exchange rates. This means that Tesco will be more profitable as customers have more money to spend, they will need to employ for staff and it is better for the economy as Tesco can exports mass amount of home grown products cheaply.
These periods share some characteristics that make them alike in some important ways. The two waves of globalization are both characterized by an increasing in international trade and in capital flows. Both globalizations also had a notable increasing effect on worldwide growth. During the first wave, a low tariff barriers policy was driven. Improving in long distance transportation and improving in communication occurred as well.
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
The jobs created are for both the unskilled and skilled labor. Thirdly, this ultimately leads to improved living standards among the workers of the companies. The multinational companies are known to develop a managerial pool because they normally provide their own managers, who are developed and seasoned to run the business in the host country. In doing so, they seek others to develop the skills of management to others, who are taking over the managerial duties in the host country because they have better knowledge of their local markets operations. Lastly, foreign direct investments also promote innovation in different areas, especially technology.
This has been provided a better advantage to the company because it is able to increase its operations as expected. With the use of new current technologies, the operations of the company have been made better and faster. The customers are usually served in a faster manner and this has motivated them to continue purchasing from the company. Again, it has become easy to identify the operational areas of the company and make adjustments where necessary using the new technologies available. The quality of the products is also another greater strength for the company.
Influences on operations management have multiple effects on businesses. An understanding of external influences can help a business be able to manage and respond to them efficiently by implementing various strategies which can make a business successful. Influences on operations management include Globalisation, quality expectations, cost-based competition, technology, government policies, legal regulations and environmental sustainability. Globalisation refers to the removal of trade barriers between nations, and is defined as the integration and interdependence of national economies forming a global economy. Apple recognised early advantages of globalisation and implemented various strategies to expand internationally which results in wide range of their stores all over the world now.
It makes more people to have access to products and services at better price. It also makes available a better time, place and value oriented utilities (Shenker & Luo 2008). It opens competitive venues to small business and act as an agent of social growth, it helps in job creation, through globalization, a working class of people will