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International Business Environment - Term Paper Example

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In this paper the author describes globalization as the integration of markets, nation-states, and technologies that have enabled the individuals, the organizations and the nations to reach around the world faster, cheaper. Also, the author explains why Overall the impact of globalization is not negative. …
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Download file to see previous pages Reconciling with the local government is important for the success of an MNC in the developed countries. When the developed nations like China opened up to reforms and were attracting the MNCs, Motorola of the US took advantage of this. Motorola had clearly defined investment and indigenization policies (Hara & Nakanishi, 2004). This is an example where the local government offered incentives and Motorola established a joint committee with the government Electronics Department. It set targets for local content, carried out philanthropic activities including construction of elementary schools. It concentrated on high-end users in the mobile phones sector to handle local competition. It could capture the sophisticated, wealthy, and young users due to its innovative design. Now, while they did take advantage of the government incentives, they helped the local economy to grow. They provided philanthropic services to the local people. They do get the best deal but they do not cause harm to the people.
           International trade does pose certain challenges and one has to seek to balance it in some form. For instance, after the Uruguay Round, the developing countries expected to benefit out of agriculture and textiles but the reverse took place (Daly, 2002). The domestic subsidies in the OECD countries increased instead of declining. USA and Europe subsidized agriculture in their own countries which harmed the farmers in the developing countries as it prevented them from attaining self-sufficiency in food. This is how the rich nations became richer. This, of course, has been countered by Singer (2004) who, with reference to standard economic model contends that no one’s welfare can be improved without reducing the welfare of at least one other person. Daly also agrees that when world production shifts to countries that do the poorest jobs, it reduces the efficiency of global production. Daly argues that rich countries use high standards with the intention of keeping the poor countries from the competition. This may be his contention but this is the only way that global standards can be maintained. In fact, this is the only way to prevent an equally inhuman form of uncontrolled global capital, according to Singer (2004). ...Download file to see next pagesRead More
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