The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization - Essay Example

Comments (1) Cite this document
Globalization, privatization and liberalization have brought huge changes virtually in every areas of human life. Business is one area in which globalization has brought significant changes. Collective growth is the major slogan put forward by globalization. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization
Read TextPreview

Extract of sample "The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization"

Download file to see previous pages Collective growth is the major slogan put forward by globalization. The concept of business has been changed from the domestic spectrum to the international spectrum as a result of globalization. It should be noted that many of the prominent organizations in the world were struggling to develop properly because of the lack of opportunities for expansion in the domestic market. For example, before the introduction of globalization American coffee maker Starbucks was struggling to expand properly since they had coffee shops virtually in every corner of America. In other words, American market was highly saturated for Starbucks before the introduction of globalization. However, globalization helped Starbucks immensely in expanding their business beyond the boundaries of America. Internationalization of a business or an organization depends on many factors such as the political, economic and cultural factors in the target country. Suitable business climate is essential in the target country, for an organization to think about offshoring their business to that particular country. For example, no organization would think about establishing a business in Syria at present because of the huge political problems going on there. Same way, only few organizations may think about expanding their business to underdeveloped countries such as Ethiopia or Somalia. On the other hand majority of the organizations are looking for opportunities in Asian countries or BRICS (Brazil, Russia, India, China and South Africa) countries because of the huge economic developments in those countries. In short, political and economic climates in a particular country play an important role controlling its ability to attract foreign direct investments. This paper analyses the impact of economic growth, political and economic systems on the internalization of an organization. What impact does a country's political and economic system have on its economic development?  China is often cited as the best example to prove how well one country can utilize the possibilities of globalization to stimulate economic growth. It should be noted that China was the number one critic of globalization initially. They believed that some hidden agenda is behind the introduction of globalization by capitalist countries. They argued that globalization is an attempt to loot the wealth of poor countries. Overholt, (2005) pointed out that China opposed the “global economic order, political order and the major global institutions such as the IMF and the World Bank before the reforms started in China” (p.3). According to Hersh & Schmidt (2000), China like socialist countries perceived globalization as the continuation of capitalism (p.3). However, they quickly realized the possibilities of global trade and globalization and started to make immense changes in its political and economic systems to attract foreign direct investments. It should not be forgotten that Deng Xiao Peng was the architect of modern China even though Mao Zedong is believed to be the father of modern China. Mao was adamant so that he never deviated from the policies of communism. He never allowed foreign organizations to invest in China and private capital in any form was unacceptable to him. On the other hand, Deng welcomed foreign capital and private capital with both hands. He has realized the fact that China cannot develop properly with the help of internal resources alone. Being the most heavily populated country in the world, internal resources of China were insufficient to meet the needs of the people. Chinese government was struggling to ensure proper living standards to its citizens ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Impact Of Economic Growth, Political And Economic Systems On The Essay”, n.d.)
The Impact Of Economic Growth, Political And Economic Systems On The Essay. Retrieved from
(The Impact Of Economic Growth, Political And Economic Systems On The Essay)
The Impact Of Economic Growth, Political And Economic Systems On The Essay.
“The Impact Of Economic Growth, Political And Economic Systems On The Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
turnerdamaris added comment 9 months ago
Student rated this paper as
I never thought 2250 words essay could be written in such a free manner. I loved the style of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization

Economic Growth

...?Running Head: Economic Growth Economic Growth [Institute’s Economic Growth Economic growth is one of the major macroeconomic objectives. Economic growth is regarded as a necessary and desirable feature of modern economies (Victor, pp.5, 2008). Economic growth is widely defined as ‘the sustained increase in real per capita incomes’ (Gould, pp. 1, 1972). The definition can be broken down into small pieces. The growth that occurs should be ‘sustained’ because short-term changes in the economy do not count. There should be...
4 Pages(1000 words)Essay

Economic Portfolio - Economic Growth

...Economic growth: In every economy, there are always four main macroeconomic objectives which are, price stability, economic growth, balance of payment and full employment. To achieve this objective, both fiscal and monetary policies have to be implemented. Normally for any particular economy, both social and political problems are the key factors relevant in achieving all the four objectives. Fiscal policy refers to expenditure and taxation policies central government, that are implemented by the ministry of finance through special agencies, directly or through area ministries, where as, monetary policies are the government’s regulations of the interest...
3 Pages(750 words)Coursework

Economic Growth

...), Economic Growth, Open University Worldwide. 3. Crafts, N. & Woodward, N. (1991), The British economy since 1945, Clarendon Press, Oxford. 4. Jones, C. I. (1999), ‘Growth with or without scale effects’, The American Economic Review 89(2). 5. Jones, C. I. (2002), ‘Sources of u.s. economic growth in a world of ideas’, The American Economic Review 92(1). 6. Mankiw, N. G. (2002), Macroeconomics, Worth Publishers. 7. Mankiw, N. G., Phelps, E. S. & Romer, P. M. (1995), ‘The growth of nations’, Brookings Papers on Economic Activity 1995(1). 8. Romer, D. (1996), Advanced Macroeconomics: Third...
7 Pages(1750 words)Essay

Economic growth

...6100 d) The expenses for the first year are Interest Expense and Depreciation = 2256 + 4700 = $6956 Somers and Seville. Exploration 8. Chapter 6 pg 118. a) 67.38 is the population in our base year 1980. We are considering the growth rate from this year which is around 102% or 1.206. This shows the rate of increase in population each year from 1980. b) 67.38. (1.206)^10 = 438.53 Million. McConnell and Brue pg 151. Chapter 8. Study Question 1 and 2. 1) Economic growth is a measure of increase in the productive potential of a country. It is important...
1 Pages(250 words)Assignment

Economic Growth increase in the production capacity of goods and services in an economy. (Encyclopædia Britannica, 2008) It is also seen as the increase in the standard of living of the society as a whole. Its normally calculated by comparing the Gross Domestic Product (GDP) of a country from one year to another. There are various driving forces contributing to an economic growth, namely, improvement in technology and productivity, increases in the levels of economic activity, efficient Human resource management, greater access to capital resources, etc. Economic growth is essential because it drives the country towards improved standards of living as well as enables...
4 Pages(1000 words)Assignment

Economic Growth

..., increasing returns depict that there encompasses no scarcity of ideas and opportunists. Competition encompassed is seemingly negligible through increasing returns because they assume monopolistic natures. However, diminishing returns present lots of uncertainty because prices entail no depictions of stability. Assumptions encompassed in diminishing returns seem theoretic compared to endogenous developments. #.4 Romer’s exemplifications concerning charter cities would contribute exceptionally to growth. This draws explanations from ideologies outlined concerning charter cities. Romer expounded that success emanates from incorporation of rules and charters (Romer, 2007). Therefore, economic plans...
3 Pages(750 words)Essay

Openness and Income

...proceeds. In order for these countries to generate the necessary forex to service their external debts incase of capital flows interruptions, they need to shift their exports towards exports sector. They can also achieve this through compressing of their imports. However, compressing imports can be very expensive for a closed economy. Figure 2 Figure 3 Question 3 Overall, foreign direct investment has a positive impact on economic growth of most countries with high levels of openness to international trade, education levels, lower population growth and proper stock market development. FDI is a vital indicator to boost the economic...
6 Pages(1500 words)Assignment

Economic growth

... but poor living standards are ranked high while those with poor quality education and high living standards are ranked low. As such, the article singles out education as the main contributor of the national development. References Pinar, M. , Stengos, T. , Topaloglou, N., (2013) . Measuring human development: A stochastic dominance approach. Journal of Economic Growth, 18 (1), 69-108.... is limited in that it ignores the relationship of the attributes that are used to construct it. As such, two countries can have the same HDI but have different levels of education standards or health care. In order to eliminate the limitations of the HDI and traditional models that are used to measure human development, the article proposes a new model....
4 Pages(1000 words)Essay

Economic growth

...of this is the entire country having a low Gross Domestic Product and thus low productivity levels in some countries. However, there are some countries that are strict with regard to the performance of the organizations and as expected the result of this is having hard working people, this raises the Gross Domestic Product. With a high GDP, the productivity levels are normally high. Government policies can lead to high productivity if for example they focus on the rights of workers and ensure that they receive fair treatment. This leads to workers with increased morale and consequently high productivity levels. Another example is having policies that seek to ensure that politicians do not interrupt...
2 Pages(500 words)Math Problem

Economic Growth a common language, especially by expatriates and businessmen. This clearly indicates that it is setting up international standards for future markets (Blomqvist, 14). Singapore is also projecting to redevelop its urban centers. This is because, by re-planning the urban center, congestion of traffic towards the CBD will be greatly reduce and hence simulate economic growth. Finally, Singapore government aims at establishing telecommunication systems and generating power plants that will spearhead manufacturing and service sectors. Moreover, it is planning to diversify its banking services as well as ensuring that there is trust, transparency and accountability in...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Impact Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization for FREE!

Contact Us