In this essay we will discuss about Globalisation.
Economic globalization Economic globalization is the process of increasing the financial integration amongst countries. Consequently, economic globalization leads to the development of a "global marketplace" or "a single world market".
Economic globalization is enhanced by the accession of multinational enterprises, which result into the rise of the profits of that "global marketplace".
It is hard to define a multinational enterprise MNE as definitions change over time. As Maurice Bye proposed a company is considered an MNE only depending on the amount of countries it occupies. Specifically he said " MNE was purely given the name by the amount of Economics and globalization essay a company occupied".
Dunning defined an multinational enterprise as " Following the above descriptions, someone would wonder, how companies become multinational.
Indeed, the development of a firm into a multinational company is a long-lasting, expensive and difficult procedure, which we will discuss later.
At this point, it would be good to mention that a firm is any business such as a corporation or partnership. There are many reasons why firms become multinational enterprises.
To begin with, by becoming multinational, a company can spread risks. More specifically, if the economy in one country is slow, or demand is decreasing, it is highly possible that economy will be prospering in another country.
Also, via expanding globally i. Furthermore, as the market is becoming more global-especially through internet- it is a case of "multinational to survive". More specifically, various companies use the Internet, the greatest innovation of our times, in order to advertise and sell their products.
Moreover, another important factor for firms to develop into multinational companies is cheap labour and cheaper raw materials in several countries abroad.
To continue with, by getting into a group of more "technologically developed" countries and companies, firms can benefit in improving their production.
More specifically, by integrating with larger companies, firms incorporate better technological equipment. As a result, firms can produce more efficiently and hence, enhance their profits.
At this point it would be useful to mention the phenomenon of "government subsidizing". In that way, companies will become increase their popularity and eventually become multinational.
However, it is of great importance for firms to obey to specific criteria in order for them to be in fact considered "multinational". It is true, that the improvement of technological equipment, transportation of products and development of production processes and communications play a great role in the consideration of a company as "multinational".
Jacoby proposes that a multinational corporation evolves from six stages. The first stage is exporting its products to foreign countries. This phenomenon is called joint venture exporting and can be more specifically described as the procedure of producing goods in one country and selling them in another one.
This procedure is linked to the first stage Jacoby described. The second stage involves establishing sales organizations abroad. The next stage involves "Licenses use of its patent and know-how to foreign that make and sell its products".Economic globalization is the process of increasing the financial integration amongst countries.
Consequently, economic globalization leads to the development of a . Future Of Globalisation And Its Impact Economics Essay. Print Reference this. Disclaimer: Globalization can be explained as a continuing procedure through which local economies, cultures, and traditions have been incorporated by a world-spanning system of interaction and implementation.
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Economic globalization is the process of increasing the financial integration amongst countries.
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Essay on Globalisation. Article Shared by. ADVERTISEMENTS: Globalization of Economic activities: Another characteristic of globalisation is the control of economic activities by domestic market and international market.
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