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Inherent to internationalization of business is the concept of globalized world economy. Since the inception of the concept of…
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Download file to see previous pages Internationalization, as a key current business trend is vital is promoting political reforms based on diverse perspectives. Further internationalization of business has environmental and political impacts. This paper provides a succinct discussion of the economic, political, social, and environmental implications of internationalization of business.
Internationalization may be in diverse forms. A business can opt for foreign or direct investments in a foreign country and set up its subsidiaries from which it operations. A business may opt to form partnerships or business arrangements with interest business in a foreign country. It may involve allocation of subcontracts to foreign businesses or experts. It may also involve a business entity’s participation in foreign networks.
Internationalization of business has accelerated economic progress in less-industrialized countries compared to any other development factor according to Penrose (1956). An example is the case of General Motors (GM). The firm started in Australia in 1926 and operated in the country until 1954. After 1954, the firm had plans to expand to other markets. In essence, GM’s operations in foreign markets outside Australia promoted industrial development, both in Australian and foreign destination markets. Growth of foreign investments through internationalization of firms contributes to economic progress.
Hymer, Cohen and Dennis, 1979, address the internationalization of capital by multinational corporations. Multinational corporations may engage in three key aspects. First, the can engage in capital movements across different countries. Second, multinational corporations can engage in capitalist production. The third aspect is engagement in international governments. All the three are vital to promoting economic progress by multinational corporations through internationalization of capital (Williamson, 1981). Improvement in ...Download file to see next pagesRead More
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