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The document discusses globalization and multinational corporations. It defines globalization as the integration of economies, technologies, and cultures around the world. Globalization is driven by international trade and investment and aided by information technology. It affects politics, culture, and the environment worldwide. Multinational corporations operate in many countries but are headquartered in one home country. They gain benefits like access to new markets and resources but can also face challenges like different laws and loss of local businesses in host countries. Overall, globalization and MNCs both provide opportunities and risks that affect economies and societies across borders.
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- 3. Global environment can be de defined as the environment about our surrounding that influences world-wide scale. The global business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of an organization, influencing decision making on resource use and capabilities.
- 4. Globalization is the process of international integration amusing from the interchange of world views, products, ideas and other aspects of culture. Globalization is the process of interaction and integration among the people, companies and governments of different nations. It is a process driven by international trade and investment and aided by information and technology. This process has effect on the environment, culture, political systems on economic development and prosperity and on human physical well-being in societies around the world. From the above explanation we can say that globalization is the integration or amalgamation of various cultures, style, economic policies, and political views.
- 5. Economic Globalization Political Globalization Social Globalization
- 6. Improved of communication Improved Transportation Influence of Regional and International Agencies Free Trade Agreement Global Banking The Growth of MNC Influence of political culture Expansion of culture Expension of knowledge and knowhow Global use of capital Developing International Relation
- 7. Borderless Liberalization Free Trade Globalization of economic activities Connectivity A composite process A Multi-dimensional process A top down process Mobility Cultural Diversity
- 8. 1. Change of Food Supply 2. Division of Labor 3. Less job security 4. Damage to the Environment 5. Cultural Impact 6. Power of WHO, IMF, and WB 7. Greater Mobility of Human resource across the countries 8. Increasing influence of multinational companies 9. Technological process
- 9. 1.Impact on Technology 2. Impact on Education 3. Impact on our culture 4. Modern Technology 5. Impact on politics 6. Impact on Family 7. Sports and recreation 8. Impact on agriculture 9. Impact on industry
- 10. Definition of MNC: - an enterprise operating in several countries but managed one (home) country. Generally any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation. A multinational corporation/company is an organization doing business in more than o0ne country. I other words it is an organization or enterprise carrying on business in not only the country where it is registered but also in several other countries. It may also me termed as International Corporation.
- 11. 1. Giant size 2. Huge Intellectual Capital 3. Operates in many countries 4. Large number of customer 5. Large number of competitors 6. Professional Management 7. Transfer of resources 8. Several Forms
- 12. 1. Branches 2. Subsidiaries 3. Joint Venture 4. Franchises 5. Turn key project
- 13. 1. To increase market share 2. To secure cheaper premises and labor 3. Employment and health and safety legislation in other countries may be more relaxed. 4. To avoid or minimize the amount of tax to be paid 5. To take advantages of govt. grants available 6. To save on cost of transporting goods to the market place 7. To develop on international brand.
- 14. 1.Access to Consumers 2. Accesses to Labor 3. Taxes and Other Costs 4. Overall Development 5. Technology 6.Exports & Imports 7. Helps of MNCs
- 15. 1.Laws 2. Intellectual Property 3. Political Risks 4. Loss to Local Businesses 5. Loss of Natural Resources 6. Money flows 7. Transfer of capital
- 16. 1. MNC’s create opportunities for marketing the products produced in the home country throughout the world. 2. MNC’s helps to maintain favorable balance of payment of the home country in the long run. 3. Home country can also get the benefit of foreign culture brought by MNC’s. 4. It gives a boost to the industrials activities of home country. 5. The create employment opportunities to the people of home country both at home and abroad.
- 17. 1. MNC’s transfer the capital from the home country to various host countries causing unfavorable balance of payment. 2. MNC’s may not create employment opportunities to the people of home country if it adopts geocentric approach. 3. As investment in foreign countries is more profitable. MNC’s may neglect the home countries industrial and economic development.
- 18. Copy Right@Omar Farok (MGT)