The Impact Of Globalization On The Multinational Corporations Essay

The Impact Of Globalization On The Multinational Corporations - Essay ExamplePlenty of definitions were given to globalisation by divergent scholars. In any case, it is a fact that globalization has influenced most of the invigoration segments of piece being at present. The things happening in one part of the world has the capacity to affect the life of people in other parts of the world because of globalization. According to Lieber and Weisberg (2002), globalization helps people all everyplace the world in the creation of a stronger and stable world (Lieber and Weisberg, 2002, p274).Global wealth is currently shifting from little heavily populated American and European regions to the more heavily populated Asian region at present because of globalization. The worlds tallest building is now in Dubai. The largest publicly traded company is in China. The largest passenger airplane is make in Europe. The biggest movie industry is Indias Bollywood, not Hollywood. And in the most r ecent Forbes rankings, only two of the worlds 10 richest people argon American (Zakaria, 2008, p.198). Business is one segment in which globalization brought revolutionary changes. new securities industry is heavily globalized because of globalization. nearly of the prominent organizations in the world are currently operating internationally or cross culturally. Politics, economics, and religious or cultural beliefs are not causing any bulwark in preventing the growth of international business. Offshoring and outsourcing like business concepts evolved out because of globalization. Multinational companies are utilizing these business concepts judiciously to make profits. The concepts such as Free trade, regional trade blocs etc are luck MNCs immensely in spreading their business to overseas countries. Foreign Direct investment or FDI is encouraged by all countries as part of their economic reformation activities. All these favourable business climates are helping MNCs in operati ng cross culturally at present. This paper reviews the literatures to know the impact of globalization upon MNCs. lit Review The impact of globalization on multinational corporations Globalization has impacted MNCs both positively and negatively. Most of the prominent companies in this world were assay for expansion before the introduction of globalization. For example, Starbucks is a company which is struggling to expand in America because of their excessive number of coffee shops everywhere in America. American market was saturated for Starbucks and they were looking for opportunities in global market. While Starbucks was very successful in its domestic market, the leadership of the company knew they would have to exploit globalization and expand the company to foreign markets to fully utilize the potence that the company had. In 2003, Starbucks quickly expanded into foreign markets and began to evolve into the world-wide company we know today(Hart, 2011). At present, Starbucks is accumulating more revenue from international market than from American market. Robinson (2003) has pointed out that globalization helps the world to develop multinational capital (Robinson, p.12). The presence of transnational is operating globally with the help of transnational capital. Prominent automobile manufacturers are currently offshoring their manufacturing operations to cheap labour oriented countries such as India and China to reduce manufacturing cost. It is tight for an American do vehicle to compete effectively with a Korean or Indian made vehicle in terms of price. Price wars are getting intensified in the automobile arena in recent times and hence the profit percentages of the automakers are coming down drastically. Governments in different countries have already formulated implemented