It is not unusual in Europe to have 1 in 5 employment opportunities present because of the transnational nature of the modern business world. That is why their presence is such an essential component of the global economy. Companies can provide consumers with better consistency when they exist internationally. There might be different menu items advertised on the big board and you might see changes to the seating arrangements, but the cleanliness and service expectations are always the same. The presence of multinational companies can give consumers confidence in the end product they receive because there are more chances to add predictability to each transaction.
Larger companies with an international presence invest more into research. That number is reflective of the presence of multinational companies basing their domestic headquarters in a similar number of locations. We like to think that startups, entrepreneurs, and similar companies are more innovative, but that is simply not true. Organizations which hire more than employees produce 5. Multinational companies can do more to guarantee the quality of their work.
Even though multinational companies have an international presence, their efforts work toward a continuous improvement in the quality of their goods or service purchased by local consumers. It creates an economy of scale that reduces the final price of an item without discouraging vendor relationships. People want to do business with the Walmarts of the world because it puts their products in a place where millions of consumers can see it.
Distributors, suppliers, and even small business owners want relationships with MNCs because it allows them to expand to new markets too.
When you have a multinational company working to grow, this process helps to create more MNCs that can benefit the local, national, and global economy too. It is a positive cycle that encourages product diversity without forcing consumers to make choices based on their geographic location. It is a structure which can guarantee the quality of competitive products.
Multinational companies create opportunities every day to improve the quality of what they offer. These organizations walk a tight balance between the cost of the item relative to how good it is for a consumer. This emphasis on price creates a competitive factor in all industries which forces the competition to seek ways to improve how well their goods or services are too. This advantage creates a situation where the standards start rising across the entire industry, allowing consumers to choose what they want based on the price they can afford.
Larger companies help to promote diversity. MNCs define success based on their ability to be active in multiple markets simultaneously as a primary provider to their targeted demographics. This presence leads to a growing level of diversity within the organizational structure that can benefit the consumer and the employee.
Because the focus is an outward movement from a centralized office, the local markets dictate what interactions occur at the consumer level. Those who oppose globalization cite some issues associated with the growth of this concept and include; nations which are poor are always disadvantage for example countries who rely on agricultural products and their domestic markets having experiencing competition from Multi-National Corporations in same industry which force the local firms to offer there commodities at cheaper prices thus leading to making of loss by such firms Held and McGrew, The other issue is that of exploitation of employees of foreign origin by utilizing them as labour and paying them fewer wages and salaries on the work done.
Also MNCs may subject such workers to working for long hours with less pay. Such a situation particularly in poor countries like in Africa has led to escalation of poverty levels since such workers may not be able cater for their basic needs. Globalization has also led to sudden shift to service work from manufacturing processes; this is because of the service provision being considered cost effective particularly when viewed from the aspects of offshore employees and such workers shifting to service industries.
Such scenario particularly in Africa and some Asian Countries has led to increase in economic gap between the unskilled and the skilled employees Snarr, There is also an argument that globalization has resulted to growth of contingent jobs in that many MNCs like the BAT and Coca Cola Companies are now favouring the recruitment of part-time or contract based workers thus saving costs that they have could incur on the recruitment of full-time employees.
Such scenario have led to job insecurity since the workers will not receive benefits like pension benefits when they will retire thus making life difficult particularly for the old in the society. Globalization has also led to weakening of labour trade unions in that many firms are set up in different parts of the world and there have also been an increase of unemployment rates meaning that there exist surplus of workers in many modern economies.
A good example is in the U. S where firms can replace the employees at will since the existing unions have limited powers to protect their workers.
Tehranian, This concept has also led to realization of worldwide ordinary market and at the same time to introduction of financial markets which is integrated and thus can lead to many crimes such smuggling of products. Reports show the major reasons, in regard to globalization, that explain the harmonization of economic policy with neoliberal ideologies.
One of the reasons is that globalization would be close to impossible to think of convergence of national economies into a common space controlled by hegemonic power through which countries are not prevented from exercising their powers such that they single handily design economic policies in line with their specific circumstances Stiglitz, The second reason is the identification of the underlying shift stands for a change in power balance amid the social classes in support of capital at the world level.
The goal involves trade and capital flow liberalization as well as labour markets deregulation keeping in harmony with the interest of capital. In contrast, the capacity to organize and maintain pooled bargaining by labour has been shaken by deregulation of the capital mobility, labour market, and technological changes.
Gill, Controversy also mars the factors that promote globalization. Obliviously, technological development has contributed to the intensification of interdependence.
However, it is not substantial to claim that technology, by itself, would precipitate globalization. For instance, it is unclear whether capital mobility would be achieved due to technological advances alone; development in communication coupled with capital flows deregulation have improved capital mobility Cullen and Parboteeah, International marketing occurs when firms or organizations plan and conduct transactions across international borders in order to satisfy the objectives of both local and international consumers and the organization as well.
Efficient and effective marketing strategies or policies however, should be adopted to fit the unique characteristics of each international market. Before an organization embarks on international marketing it must consider the cultural environment that is involved in business activities.
The organization e. BAT or SmithKline Beecham firms engaging in international business must consider cultural values that will vary from one country to another. Because firms operate in highly uncertain environment where conditions may be ambiguous, contradictory, and subject to rapid changes in the market.
Culture is said to be a system of values and norms that are shared among a group of people and that when combined together it comprises a design for living that is culture is the way of life Mellahi, Frynas and Finlay, It is important for any firm that wishes to go international to understand fully the concept of culture and how this cultural environment will affect its business undertakings.
To many writers culture is the central core for any marketing policy. This is because as firms thrive to explore new markets customers of different cultures are involved and thus the marketing policies of each and every firm has to meet the demands and desires of the diverse cultures.
For instance, before Coca Cola markets its drinks in different nations it must first conduct a survey to establish the likes and dislikes of the customers in any market they venture in. There are many reasons as to why culture should be considered by the marketing managers when formulating policies and include the following: Since international marketing is concerned with exploring new markets in different countries there is need for the marketing managers to understand fully the social structure of the target market.
Social structure is a basic social unit that individuals live in and how they do things is defined by this structure. Marketing policies should be formulated with particular consideration of the target market desires and wants. Social culture is also very important in that some communities are subdivided in to categories that will help the firm to market their products and services efficiently.
The issue of economic development in non-developed countries is an overall lack of resource access. What is available to the average consumer in the United States is very different when compared to what is accessible in a country like Somalia.
That allows them to access better goods, create more opportunities, and eventually raise the standard of living for everyone. Multinational corporations provide local employment. If you step outside of the developed world for a moment, the average person works in an agriculture-related position. Multinationals come in, offer higher wages which are still low compared to global standards , then shift the standard of living.
The average real wages have almost tripled since in the developing and emerging G20 countries since India had the highest levels, achieving an index rating of 5. Multinational corporations improve the local infrastructure.
Companies must have employees who can access job sites to become productive. That means an investment in the local infrastructure becomes necessary before operations even begin. Roads, bridges, and technology access are three of the largest barriers taken down when multinationals become active in a developing country.
Similar spending occurs with other multinationals too. The only things large multinationals cannot overcome are corruption and war. Multinational corporations diversify local economies. Many communities, developing countries, and economies all rely on primary products for subsistence. Most of the products tend to be related to agriculture-based industries. Multinationals provide these economies with more variety, creating diversity in local production levels.
That reduces reliance on commodities which often have volatile prices because their supply and demand levels waiver so often. Multinational companies create consistent consumer experiences.
Multinationals work from a centralized structure, which means there is a basic expectation that every asset will look and perform as every other one does. Consumers trust these businesses because they understand what the value proposition is for them before they ever walk through the doors. The same is true for Walmart, Volkswagen, and every other company which made the Top 10 in the Fortune Global Multinational corporations encourage more innovation.
Many of the companies with the most intensive research and development intensity are the multinationals who are on the Fortune Global Only two companies, Apple and Stanley Black and Decker, qualify as high-leverage innovators because of their investments today.
Multinational corporations enforce minimum quality standards. Where there is competition, it brings in price and product differentiation that distinguishes other retail establishments from each other. Instead of the rags to riches story, Morgan, born into a wealthy family, was given the financial world to conquer.
Steel, General Electric and other major corporations while using his influence to help stabilize American financial markets during several economic crises. Capitalism, America 's new economic system, depended on competition and played a huge role in the overall process.
The most significant takeaway that I have from this course would be learning information regarding John Rockefeller and Andrew Carnegie.
Now, the reasoning behind this is because these two men without a doubt influence the nation more than anyone else during their era and beyond. Additionally, their businesses employ more people across the country than any other companies of this time.
Moreover, once these men reach the pinnacle of the corporate world, each one decides it is time to start giving back to their fellow man. Barons such as Andrew Carnegie, J. P Morgan, and John Rockefeller dominated the country through the enormous wealth that they amassed.
The power that these individuals wielded was unfathomable. They even bought the presidency. It was through their combined might that William McKinley was elected. This pushed their power and wealth to even greater heights. Peter Hintereder and Martin Orth — Germany is one of the most competitive economies because of globalization!
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