MNEs and Globalizations - Essay Example

Global marketing means a fully integrated worldwide strategy based on consistent brand selling. These companies are progressive. The dynamic forces inherent in all progressive companies are logically directed toward growth and expansion. When the opportunities for growth become limited in domestic markets, for whatever reason, there is no place to turn but to foreign areas. Controlling the far-flung global corporation-communicating with distributors and suppliers, operating 24 hours a day in different national environments, servicing local and international reporting needs-is a major business challenge that requires powerful information system responses (Buckley & Ghauri, 1999).

Contemporary developments show that MNEs is that part of the process of global management that is concerned with the maintenance of human relationships and ensuring the physical well being of employees so that they give the maximum contribution to efficient working. Back in the industrialized nations, however, there is an increasing sense of social distress as workers see their plants close and jobs shipped out of the country. Also, MNEs support cultural globalization and integration dictating new patterns of consumption and buying.

For instance, McDonald's Corporation is one of the best examples of MNE's impact on the global scale. . Fried chicken is on the menu in many Asian countries. Other offerings include banana fruit pies in Latin America, Kiwiburger (served with beet root sauce) in New Zealand, beer in Germany, McSpaghetti noodles and a sweeter Burger McDo in the Philippines. In some countries, McDonald's changes its food preparation methods to comply with religious customs. This consumption culture creates new forms of control known as 'global colonialism' (Banerjee & Linstead, 2001, p. 683). MNEs created standardized products driving value and customer's taste.

For many MNEs, the changing environment combines elements of both new products and HRM policies aimed to improve organizational performance and global position. The process of global HRM, however, is typically much more complex, and interesting, than traditional one. MNEs must deal with a number of key differences in foreign environments as compared to home environments (Black, 1999).The improvement of economic and social well-being is influenced by the simultaneous interaction of political, social, economic, and cultural factors-the level of resource endowment, the extent of industrialization, prevailing cultural norms about family size, and the ability and willingness of governments to make often politically costly development decisions.

Also involved is the degree of penetration of rich countries in the economies of poor countries. According to Lodge & Wilson (2006): "MNC involvement is crucial to poverty reduction for two reasons: the reduction of poverty depends on the growth of business, and poverty reduction requires systemic change, and MNCs are the world's most efficient and sustainable engines of change". Meanwhile, a dispersal of productive wealth is