Multinational Firms Play An Important Role In Economic Globalisation. Identify

MULTINATIONAL COMPANIES AND THE CHALLENGE OF GLOBALIZATION TABLE OF CONTENTSINTRODUCTIONMNC AND ECONOMIC GLOBALIZATIONGLOBALIZATION AND acclivitous PROBLEMSTHE CHALLENGE ARISING FROM THE DIFFERENT ORIENTATIONS TO WORKCONCLUSIONREFERENCE INTRODUCTIONA multinational company (MNC ) is defined as company that proclaims or controls its productions or service facilities in more(prenominal) than unitary inelegant In plain words , a multinational company not only owns (partly or collectively ) a branch or productive facilities outside its country . A few examples of such companies can be crossing , BMW , and Coca-Cola etc According to an estimate 200 MNC control about one third of global production and half of the realness sparing units are multinational companies . There are only 14 countries whose GDP exceeds to the turnover of Exxon . The world top 100 MNCs own about US 2 trillion as scores outside their kinsperson countries , which form about a quarter of world armory in contradictory direct investment (FDI . The recent twine of mega-mergers has made many MNCs much larger and powerful than eer increasing their power many foldThe MNCs set out played an strategic role in creating globolisation . Given their international reach and mobility , prospective countries and regions often have to compete with each other to have MNCs locate their facilities as they contribute in tax , revenue , employment and economical activities to host countries (Stopford , 1998Such development has led to globalization that refers to the worldwide economical , political and technological exchange of ideas among the states in the modern world . It is used to describe , how world is fitting economic exclusivelyy and politically unified . The economic aspects of globalization embroil trade , investment and migration across the countries . Globalization believes that human be should have greater access to vast number of goods ranging from squalid labour in third world countries to bigger overseasinvestments .

international companies invest directly in different kind of assets in foreign countries , where free migration allows individuals to find employment in areas , where in that location is labour shortage (Soysa 2003Globalization and internationalization increase opportunities for cross-cultural contactDespite all the benefits MNCs are foreign companies setup in a foreign cultural environments that also give rise to different set of problems and misunderstandingThe problem arises due to differences in language , values and behavioural norms , which some times leads to failed negotiation and failed investment plan . This typography will initially discuss the role of MNC in economic development and then look up at problems in terms of socialization in the wake of globloizationMNCs AND ECONOMIC GLOBALIZATIONThe score of MNCs coincides with the rise of globolisation , which is a non-linear process . It was the eve of Word contend I , which spurred the entrepreneurs and firms to convey the manufacturing and production at global descale . However , the true global economy started to take situation between 1950s and 1970 , which was initially resisted by the Communist axis vertebra , but the Japan economic miracle made it possible to drive the global integration of capital and commodity throughout the world (Geoffrey , 2005MNCs are the most powerful institutes in the...If you want to necessitate a full essay, order it on our website: Ordercustompaper.com

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