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.
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.
Costco Wholesale Corporation Part II Costco Wholesale Corporation is an extremely competitive industry. The following writing will discuss the financial health, technological advantages, globalization, and conducting benchmarking analysis in comparison to Wal-Mart and Target Corporation. To manage financial statements efficiently is by means of income statement, balance sheet, and cash flow. The technology has advance and made developments through the year, technological advantage in Costco Company is helping the progress for success. Globalization is the key to survival that allow to a company to be competitive and offer diverse services and convenience to consumers.
This increases trade between countries which increases interaction and globalisation. TNC’s have shifted production to the developing world and created global connections and trade links. Transnational Corporations are major companies with a global presence in at least two counties. They are economically powerful and politically influential due to potential investment, the creation of jobs and access to new technology. TNCs bring lots of investment
Cross-Cultural Perspectives Mary Wilson ETH/316 March 23, 2015 Instructor Tiffanie Culpepper Introduction Globalization encourages interdependence which permits an economy to prosper by selling it merchandise to an unlimited market in other counties and can operate a business in more than one country. Globalization also benefits the parent company to buy goods and services from other countries that are successful. The parent company may be here in the United States and have affiliates or subsidiaries in the other countries. The goal is to establish a global business strategy to target developing countries that will generate the most growth and potential for profit. A company which puts to use a successful multinational
Trade Most goods we buy have a label on them. This ‘made in’ label tells us where the items have been produced and therefore from where they were imported from. The exchange of goods and services between nations is trade. International trade is based on a country specializing in producing a surplus of gods it can produce most efficiently in order to gain a competitive advantage. Trade allows for: businesses to grow and create more jobs, a wider choice of goods and services often at cheaper prices, economic growth and the strengthening of strategic and political ties between nations.
Outward-orientated (Export-led) – An outward-oriented growth strategy, based on openness and increased international trade. Growth is achieved by concentrating on increasing exports and export revenue, as a leading factor in the aggregate demand of the country. Non-governmental organizations (NGOs) – They plan and implement specifically targeted projects in developing counties and they act as lobbyists to try to influence public policy in areas such as poverty reduction, workers’ rights, human rights and the environment. MNCs (Multinational corporations) – A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management.
The definition of globalization is a growth to a global or worldwide scale. This basically means a business or service that has grown to a worldwide scale from the smaller business that was originally that starting points of their business. Globalization could also be conceived as the process by which regional economies, societies and cultures have become interrogated though a global network of political ideas though communications, transportation and trade. The term is most closely associated with the term economic globalization like that course that is offered at our school. I personally believe that globalization is the force for economic growth, prosperity and democratic freedom.
One factor from the Northern area was that society evolved because people from different cultures and classes united and worked side by side. “These economic developments generated communities of innovation in the North, especially in the rapidly expanding cities, where people traded ideas and technical information and skills (Goldfield 389). As for the South, it continued to hold onto an antiquated social order. Another factor that played a big part was tariffs that were placed on the imported goods. Reason behind this, the North being industrial manufacturers would lose competition between European imports due to high tariffs.
This process involves economic, social and cultural activities that are increased over every nation’s borders. The economic benefits are simple, it will allow companies and businesses to grow larger across the world and trade with different nations. Social relations can be further extended due to globalisation. Extensions can be made in many different criteria’s, for example the movement of ideas and people and the different types of cultures can be further understood. One of the biggest examples of this according to geographers has been the outsourcing of services by transnational corporations from the global north to the global south.