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How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy Specify your reasons using corporate cases of multinationals from different industries and different countries of origin - Essay Example

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Most Asian economies have received investments from the West as a result of growing multinational enterprises in these economies. China, for instance, has been a…
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How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy Specify your reasons using corporate cases of multinationals from different industries and different countries of origin
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Download file to see previous pages have contemplated that, it is impossible to battle with the firms from these regions unless they take advantage of the same resources that these firms have (Dunning & Mucchielli, 2003). One of these resources is cheap, but quality labor. This has led to most firms offering their labour to these nations and exporting it from their local countries.
China has received benefited from foreign investments from firms such as Apple, Inc. which has moved its production units to China in order to take advantage of the cheaper and high quality labor. This has both favourable and unfavourable impacts on the global economy. On one side, it means that these firms have increased employment in these countries such as China, thus improving the economic conditions for so many people who in any other case would not be able to get those jobs (Dunning & Lundan, 2008).
However, in the Western economies where these jobs are exported from, many people have lost their jobs because of this fact. In this regard, due to the continual growth of these firms, hundreds of thousands of people have lost their jobs in the Western nations, directly or indirectly (Dunning, 2002). Thus, the contributions of these economies to the world economy are both positive and negative. As Markusen (2004) noted, this is expected to happen whenever there is a major economic shift.
The other way in which these firms have led to the local economies getting investments from outside their region is by stock market investments. As these firms have grown, they have created an investment interests in their respective countries (Dunning & Narula, 2005). Most of these firms have listed their shares in world-class stock exchanges such as the London and the New York stock exchange. This has a fundamental impact on the global economy. First of all, it means that wealth is flowing from the developed economies to the developing economies. As Beamish, Delios and Makino (2001) argued, this has been seen to create a balance in ...Download file to see next pagesRead More
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