The Globalization Of Multinational Corporations

The world get more and more globalise. Multinational corporations have become very large and very powerful. Some, for example, are worth more than the entire GDP of many countries. One of the significant reason is the internet, where customers can order products from anywhere in the world, and have it delivered in just a few weeks. That is a big advantage for the multinational corporations, in the western part of the world.

Globalisation gives multinational corporations the ability to move the assets offshore, to countries with low corporate tax rate e.g. Bermuda, Belize and Switzerland, where the companies could be in “tax havens”. It means that the companies could reduce the costs to tax and on the contrary increase the profits for the business.

A company that operates in America, Japan and Europe will need to hire employees who speak any different languages, and it may be difficult for that company to make sure all employees are on the same page when only few of them speak the same language. The language barriers can gives many communication problems between the employer and the workers in the third world, but it isn’t the only one problem. Other coordination problems may come from differences in cultural norms e.g., marketing in the Muslim world, and business norms e.g., logistics management in countries with low-quality infrastructure.

Globalisation allows businesses to access labour at cheap prices. Outsourcing and offshoring allow businesses to hire employees in foreign countries, where labour and real estate costs may be lower than in the business’ home country. This development isn’t only positive, because every time some things is good for the business or the employees, have it a negative sense for the other part. Outsourcing of e.g. production of a product from US to Bangladeshi means the company decrease costs and therefore increase the profits for the business. When companies choose to do outsourcing, reflect it negative on the

The development goes extreme fast, today it’s more than 120 registered in the garment trade unions, up from the only 3 in 2012-2013. This law have also imply that their minimum salary jump from $38 per month to $73. Also after the disastrous building collapse at the Rana Plaze factory complex outside Dhaka in April 2013, which killed more than 1,100 people, wounded hundreds of others, and renewed calls for improves safety measures at such facilities and higher salaries for