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
The developing countries have achieved this progress by reforming their policies, institutions, and infrastructure. The existing market structure, the market potential and the expected increasing returns are the leading criteria for firms for investment. With the growing global competition, the world economy provides a large source of supply and demand, so that international trade increases the possibilities for an adequate through specialization and complementary strategies. Economies of location can be seen as a prominent factor in globalization of industries. The transnational co-operations (TNC) are important market players in world trading system.
Globalization is right for sure countries, along with the ones within the evolved world or global North where wealthy countries just like the U.S., united kingdom, and Germany can sell extra products and items to new markets inside the global South or poorer nations which include the Philippines and Indonesia. Globalization plays a vital function in presenting no longer only products and services but also method of living and the manner of boom and improvement. the following are some of the monetary benefits of globalization in connection to overseas groups: • Reduces worldwide poverty via imparting work to people. • Contributes to the spread of era by way of introducing new techniques of development. • Provides to the profitability of companies and agencies via earnings and global income.
As the rapid growth rate of economic environment in current world market, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influencing each other during diplomatic business activities. The globalization also simulates innovation and creativity in the emerging countries; it encourages the spirits of entrepreneurship and drives the emergence of innovative business models. China as one of the fastest growing countries in efficiency-driven economy system, where economic growths are based upon manufacturing in domestic markets, outsourcing, and exporting products to foreign
Multinational corporations can be defined as enterprises operating in several countries but are managed from their home country. Generally, any company that acquires a quarter of its revenue from operations outside of its home country is considered to be a multinational corporation. Today the multinational corporations have a radical effect on the economic system all over the world. This is due to the growth of international business of the multinationals, which has tremendous effect on the traditional forms of international trade and capital flows for economies at large. In the world economy they create a powerful force.
Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade. Therefore, by selling of such goods and services it will increase the producing nation gross output. Export also one of the oldest form of economic grow, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Another process involve in international trade is import, import is a process good or services brought from another country to another. Together with exports, imports also are the backbone of international trade.
One of the most well-known economic industries in America is manufacturing. Manufacturing contributes $ 2.09 trillion directly to the economy. This industry is expanding and growing in the USA meaning there is an increase in the outcome of this industry. Many people work in this industry which means that they earn money, and no one is poor anymore in the USA. Because of many people working in manufacturing, the economy of the USA has increased dramatically.
Globalization and Nation States Globalization has integrated and intertwined the economies of the world. In the world today, every nation has become independent on every other nation, be it through trade or through finance. Developing countries today are attracting large rounds of foreign investment, and this foreign investment is coming from the developed countries. Thus, the money of the developed countries is today invested in the developing countries. At the same time, the world has also become interdependent due to trade relations.
It is interesting to note the role of government policies in shaping the economy and the flow of labor migrants, particularly immigrant care workers. Care Work or commonly known as ‘domestic or household work’ has in the past decades became more international, transcending borders and nations, with the expansion of globalization and neoliberal economic policies, often dictated by major players of economies like the World Bank and International Monetary Fund, which is undeniably controlled by developed nations. The beneficiaries are often the wealthier developed nations. In the article, ‘The Globalization of care work: Neoliberal economic restructuring and migration policy’ the writers reaffirm the prominence of political, historical and economic
CHAPTER 2 THEORY OF FDI 2.1 Concept of FDI In this globalization era, many firms worldwide try to expand their business abroad in order to gain the advantages that FDI has offer. Foreign Direct Investment (FDI) itself can be defined as a category of investment made with the objective of establishing an enterprise by a company or entity in one country into a company or entity in another country OECD (2009). FDI can be divided into two types based on the direction of the investment. The first type is Inward Direct Investment which can be explained as the investment made in the reporting country by non-resident investor. The value of inward direct investment is called FDI net inflow.