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Globalisation of business activities - Essay Example

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Globalisation can be defined as the process where different countries across the globe join together in economic activities and can trade freely as a result of the removal of geographical boundaries. This economic activity taking place across the national boundaries is a…
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Globalisation of business activities

Download file to see previous pages... It should be noted that there are quite a number of key players that drive globalisation and these include the multinational corporations, World Trade Organisation (WTO), World Bank and International Monetary Fund (Rodrick 2001). Different governments are also key actors as they authorise trade to take place between them and the multinational corporations intending to invest in their countries. They are very instrumental in determining the outcomes of trade and investment between the states involved as they would be responsible for regulating the operations of the multinational companies. The WTO also plays a pivotal role in that it facilitates the platform through which international trade agreements are negotiated and enforced among member states. On the other hand, the World Bank and the IMF are major actors in that they provide with loans as well as technical assistance to the governments or multinational corporations that wish to invest in other different countries.
2. The manufacturing sectors in different countries seem to have rapidly expanded on a global scale and the three major drivers that seem to have accelerated the trend of globalisation in this sector include the government, cost, market and competitive. In the manufacturing sector, it can be noted that it is expensive to manufacture certain products in other countries as a result of availability problems of raw materials, transport costs involved as well as labour costs. Against this background, various multinational companies prefer to establish their manufacturing business in areas where raw materials are readily available and in some cases where there is availability of cheap labour.
The market drivers are particularly influenced by per capita concentrations in industrialised countries where they seem to have greater control of the means of production hence can determine the ...Download file to see next pagesRead More
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