The Overview at Unethical Behavior in the Workplace a Study of Nike - Dissertation Example

As such, it has been defined in several ways (Suarez-Orozco & Qin-Hilliard, 2004). However, the common understanding of globalization is that it concerns economic changes adopted by nation-states as they enter the global market (Soros, 2002). Globalization is generally understood as the removal of economic barriers to trade among nations, thereby, allowing the freer movements of goods, services, products, capital, knowledge, foreign investments, and people (Soros, 2002; Balakrishnan, 2003; Fischer, 2003).

It has been noted, that as globalization drives economic changes, changes in the economic policies and fundamental principles underlying nation-states' economic trading relations with other countries are also undertaken(Peet, 2003). In this regard, through globalization, the global market economy has been opened, thus, making the world accessible and smaller at the same time.  Since “Through globalization, national borders are constantly losing their significance as limitations for human interaction in general and economic collaboration in particular.

This means that for all economic actors their natural spheres of activity are expanding from national into multinational or even global.”(Supporting the Internalisation of SMEs, 2007:6).  In this regard, the presence of transnational corporations (TNCs) and multinational companies (MNCs) has become one concrete witness testifying not only the reality of the global market economy but also the actuality of a smaller world. Multinational corporations (MNCs) is generally understood as a company that has its headquarter in one country (which is the home country), and which operates in at least one foreign (host) country (Wilkins, 1991, p 53).

MNCs, just like any other corporation, seeks to increase profit via conducting business in another country as it aims to expand its market, acquire resources, diversify sources of sales and supplies, and minimize competitive risk (Wilkins, 1991). In this sense, it can be claimed, corporations and MNCs are similar in pursuit of profits, market, and sales, while at the same time, they are different because MNCs are not limited by national boundaries in doing business.