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Positive and Negative Impacts on International Business - Assignment Example

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International Business Table of Contents Globalization 3 Multinational 4 Glocalization 4 National 5 Differences between Globalization, Multinational, Glocalization and National 5 Positive and Negative Impacts on International Business 7 Selection and Formulation of Strategies 12 Business-Level Strategies 18 References 23 Globalization Globalization is the procedure of extending social relationship across the globe…
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Positive and Negative Impacts on International Business
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Download file to see previous pages These forces include economics, religion and politics. Globalization can corrode and globalize the characteristics and individualities of a local cluster. Globalization is the scheme of interface among the economies and countries in order to develop and grow the global economy. The term globalization has been increased since the mid of 1980s. In the year 200, the IMF have identified four fundamental aspects of globalization, such as dissemination of Knowledge, Trade and Transactions, migration and movement of human beings and capital and investment movements. Moreover, several environment challenges like, cross-boundary air and water pollution, climate change, and over fishing is directly and indirectly linked with globalization. Globalization has able to influence and strengthen the power of several intuitions, such as World Bank, International Monetary fund and World Trade Organization. The global business outsourcing has significantly increased due to the globalization. Several countries face challenges as they tend to maximize positive outcomes from globalization. They did not bother about the minimization of necessary elements. Due to globalization, the control of consumers over the suppliers from other foreign countries gets weaker. Multinational A multinational corporation is a corporation, which is registered in more than the host country. The multinational corporations both manufacture and sell products and services in various countries (Gitman and McDanniel, 2008, p.52). Moreover, the multinational corporations have business operations in more than one country. The first ever multinational corporation was the East India Company. These multinational corporations play an important role in globalization. Business practices of multinational corporations in several countries can overcome the unemployment problem of the nation. Moreover, it helps to increase the GDP growth rate of a country. Multinational corporations can have exerted controversial political and economic power in some countries. As a result, critics have viewed these multinational corporations distrustfully and sometimes seek to have host countries inflict restrictions on them. Accountability is also a challenge for Multinational Corporation. These organizations’ annual revenue over and over again exceeds the Gross Domestic Product of several developing countries. It will affect the financial and economic structure of a country. Glocalization Glocalization is a combination of both the terms globalization and localization. It is a business terminology for the adoption of goods and services to each culture and locality in which it used to sell. This term and process is very much similar to internationalization. This term was first introduced in late 1980 in global market. The increasing restaurant chains in global market is an example of globalization, but the change of menus in several countries in order to attract the people of particular countries is an example of Glocalization (Hesselbach, J., 2011, p.2). Organizations, individuals and households are trying to maintain the social networks that used to combine the long-distance and local interactions. The declaration of particular locality, such as a state or a city or a town is used to consider as a world territory, with rights and responsibilities on a global scale. Before ...Download file to see next pagesRead More
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