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Multinational business - Essay Example

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Multinational Business Table of Contents 1.Introduction 3 2.Drivers Forces of Globalisation Process 4 3.Necessity of Multinational Businesses and its Influences 6 4.Challenges and Opportunities to Multinational Businesses led by Globalisation 8 4.1.Opportunities: 8 4.2.Challenges 9 5.Conclusion 10 Reference 12 1…
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Download file to see previous pages The globalization factor has influenced people’s cultural, social, lifestyles, knowledge etc. However, in this process, the most important outcome of globalisation process is the emergence of multinational business. The multinational business has made major contributions in the economic growth and developments as it helps in increasing employment, industrial production, better government control, higher GDP, national income etc. Having realised the growth importance of multinational business, the most developed and developing countries are following free trade policies to encourage multinational business. The recent developments in the field of international trade are primarily led by deregulation of the business in the global platform. The multinational business are very helpful in increasing flow of capital, exchanges of resources like labour force, raw material, technology etc and it also offer a number of opportunities to the multinational corporation along with hosting country. It brings the competition in the market by making the specific market matured and efficient. In this regard, Hope and Maeleng have described the trade policy as “competition-enhancing device” as the host countries’ market receive a number of new players making the market highly competitive for the existing domestic companies (Hope and Maeleng, 1998, p.52). The organisations are trying to expand their market in the overseas boundaries to grab market opportunities. However, in this process of internationalisation there are a number of challenges which have been driven by multiple factors. This paper will attempt to main drivers of multinational business led by globalisation process and major opportunities and challenges in this regard. 2. Drivers Forces of Globalisation Process Globalization has been a very debatable but an interesting area of the Economics as it includes all the necessary aspects of growth and development. In fact, the process of globalisation includes combines economics, international relation, sociology and management. All these areas are very significant for economic development and globalisation have playing a crucial role in this regard. As globalisation covers wide aspects, many scholars have tried to define globalisation as per their perspectives. Rhodes (1996) stressed on economic and financial “the functional integration of national economies within the circuits of industrial and financial capital” (Ali, 2000, p.5). On the other hand, Mobley and Weldon have given a much broader definition of the globalisation as they defined that is refers to any force that creates an unexpected, uniform, sometimes disruptive condition across heretofore impermeable boundaries within which the relevant conditions were previously varied” (Mobley and Weldon, 2006, p.146). The process of globalisation has been very gradual and there are a number of driving forces behind this process. Globalisation can also be viewed from the multidisciplinary aspects which includes a philosophy, a phenomenon and a process and these three multidisciplinary aspects have influences the human being profoundly. In this regard, the driving forces have led to turn the phenomenon as a process and philosophy. There are four major driving forces of the globalisation process that includes trade, finance, technology, communication and transport. The role of each driving forces are explained below in the process of gl ...Download file to see next pagesRead More
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