Globalisation and operate business globally are significant issues for contemporary organisations. Global business is refers as an economic activity that operates in different countries that selling and buying goods and services by people (McWilliams 2010).Businesses are incentivized to sell products and services in foreign markets with technology advancing so fast and international trade expanding. The global business strategy vision is to develop far beyond the borders of their countries and allow businesses to grow (Chan & Justis 1997).Through global business, it helps enterprises reduce costs, expand their market share and become more competitive. There are two impact of global business. One of the impact is multinational corporations
Also ,there are some advantages and disadvantages for China .Like economic globalization is beneficial to accelerate the construction of domestic maket economy system.Economic globalization and China’s accession to the WTO makes our country gradually integrated into the world economic system,domestic and international market, make the Chinese enterprises to participate in international competition in the market ,these are conductive to familiar with the rules of market economy and international market in our country,set up the mechanism of market economy. Globalization also brought great challenges to China ,China is a developing country,it is facing the same challenges as other developing countries.In addition to the fact that a number of strong companies in developing countries can benefit from market ,most domestic companies are hit by multinations.First, the national industry was hit.In a few short years,more than tens of thousands of multinational companies in the
Economical Factors China is seen as one of the most energetic countries in the world when it comes to economic development. The new reforms in 1978 stimulated the Chinese GDP growth from 364 billion RMB to 63.6 trillion RMB within 30 years (chinability.com, 2015). China has persisted to be a primary beneficiary of the world’s destination of Foreign Direct Investment in the latest period. FDI reports 27% of the value added production, 4.1% of national tax revenue, and 58% of foreign trade (usi.edu, 2010). China was facing an economic growth and a huge development, even though the international financial crisis of 2008 left some marks on several aspects of China, above all the export-oriented light industry in southern China (chinapolitik.de, 2009).
1.0 Introduction This assignment is mainly focus on the Globalization of the world economy. At the beginning of the assignment I have given a brief discussion about what is Globalization & middle of the assignment it is all about the drivers of the Globalization. The drivers of the Globalization include two main factors as declining of the trade barriers & technological developments. At the end of the assignment I have divided the essay in to two main areas as one to describe the benefits of the Globalization & one to describe the cost of globalization. In those divisions I have discussed the factors by focusing on the perspective of country & perspective of the business.
Air pollution, essentially, is an environmental problem. But the issue could be explained from three different levels. From the global level, economic globalization is the cause. Economic globalization allowed many foreign companies to build their factories in China. For example, Apple has its iphones and ipads produced in China.
A common way to make strategic asset-seeking investments is through acquiring assets of foreign company in order to replenish or increase the company’s current assets. Strategic assets are often sought through merging or acquiring assets of foreign companies to gain competitive advantage in a new market and to promote long-term strategic objectives. The MNEs that are prompted by this type of OFDI are commonly established MNEs that aim for an integrated international or regional strategy, and new foreign direct investors that look for acquiring a competitive strength in a foreign market. The main motive for strategic asset seeking OFDI is to leverage of minimizing a particular cost or marketing advantages over the competing MNEs international portfolio of physical assets and skilled labour competences. Thus, strategic-asset seeking OFDI enable companies to increase their ownership-specific advantages or decline other companies’ competitiveness.
Globalization is a process in which the world becomes more and more inter connected as a result of trade and the exchange of culture. Big companies that were once national companies have become trans-national companies (TNCs). These companies are mostly based in MEDCs (More Economically Developed country’s) such as the US or the UK. The TNCs invest in MEDCs and LEDCs (less economically developed country) to maximize their benefit. Most TNCs including Nike get their products manufactured in LEDCs such as China, Taiwan, Indonesia, Vietnam, and Bangladesh.
The threat for TESCO and AEON is able to overcome by their strength. So that, the impact from threat able to face and solve it smoothly by this two firms. 5.0 CONCLUSION Based on the SWOT analysis, there a lot of information have been gain and able to compare between the firm that selected such as TESCO and AEON. TESCO and AEON is a huge competitive firm in retailer market and it able to contribute to economic growth in Malaysia. The SWOT analysis able to develop awareness and planning for future decision for that both firms.
H&M gained competitive advantage of low risk and constant profit margin in Singapore and Malaysia, because it is politically stable. The reason why H&M pursues wholly owned subsidiary in countries such as in America and Canada is, because H&M can have a control (full) over their stores. Franchising can only be used when the
Telekom Malaysia Berhad (TMB) or previously known before its privatization as Jabatan Talikom Malaysia has consistently maintained its market in the telecommunication industry. After it privatization, several new product and services has been introduced. In 1994, Ministry of Energy, Telecommunications and Posts issued the National Telecommunications Policy (NTP). The main objective of the policy is to encourage competition in the telecommunications sector in order to achieve efficiency and to provide excellent and quality service. It is recorded that productivity in the form of total revenue per worker had risen after privatization compared to pre-privatization.