Globalization And The Development Of Transnational Corporations

Globalization involves global interaction and cooperation between individuals, corporations, countries and their governments. As demand for products grows and the technology it takes to improve the process by which products can be manufactured more cheaply grows, globalization grows as well. It is supported by advancements in technology. These changes can have both short-term and lasting effects on issues surrounding economics, politics, the environment, and human rights. Thanks to globalization, companies like Nike are able to transform themselves. In Nike’s case, from a small local company to a global sports shoe and apparel superpower and a globally-recognized brand. However, as Nike

Conditions have changed. Global trade has rapidly increased in both volume and value, reaching nowadays more than $4 trillion in 1997 (Daniels J.D., Radebaugh, 1998, pg. 529). Competition is fierce from all corners of the world. Failure at the global level can backfire and may consume existing brands and business relationships. At the same time, global opportunities have emerged that offer possibilities for growth, profit, and an improvement in worldwide standards of living.

Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large

Globalisation is the process by which the world is becoming progressively interconnected as a result of significantly increased trade and cultural exchange. It has also increased the production of goods and services. The biggest companies (such as McDonald’s, Starbuck’s, Costa

Transnational Corporations (TNC’s) play a large role in the development of the global economy, through the sharing of research, trade and technological advances between the different countries. They also play a big part in increasing the interconnection in the world’s economic, cultural and political systems, otherwise known as globalisation. Nevertheless there are both positive and negative impacts that TNC’s bring to the global economy, socially, economically, politically and culturally.

Businesses today operate an environment that differs greatly from anytime millennia, centuries or even decades ago. The pace of businesses has increased exponentially with the continuous improvement of information technology, telecommunications and geolocation supported by satellites and progressively more efficient modes of transportation and mechanization. The ability to move products globally overnight, increasing levels of automation, and collaboration instantaneously via virtual means has forever changed and reduced traditional barriers businesses face while creating a myriad of new challenges, risks and opportunities.

I feel that transnational cooperation’s have had a large impact on globalisation. A transnational corporation (Multinational Corporation) TNC is a corporation or enterprise that manages production establishments or delivers services in at least two countries such as Coca Cola and Nike. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies and play an important role in globalisation. I feel that the economy is the most significant motivating force

Globalization refers to the “tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange”³. Globalization is closely related to foreign investment in the sense that foreign investment is a contributing aspect of globalization. It has also been noted that globalization can especially impact developing countries as it “helps developing nations "catch up" to industrialized nations much faster through increased employment and technological advances” . McDonald’s is a prominent example of a company that has embraced the opportunity to globalize and achieve success doing so. McDonald’s is the largest fast food restaurant chain in the world consisting of more than 35,000 outlets spread across 118 countries. Although the company was founded in the United States, they have not limited themselves to North America; they now spread worldwide into every continent. Similar to their global growth increase, the company has also seen their revenue tremendously increase as they continue to share their product with more and more people around the world. “McDonald’s key to success is its business mantra of “think global, act local”. This has allowed the company to achieve financial success in every region it opens its fast food restaurants”4. McDonald’s has clearly found the right strategy in terms of growing their product internationally as they’re seen to be one of the most successful companies doing so, their numbers support their success as they receive around 65% of their revenue from international

The globalization and corporate expansion of American companies has promoted inequality in the United States and the world, largely through means defined to be inhumane. Corporate America has embraced a ‘hands-free’ method of globalization. By both outsourcing labor and targeting more consumer groups, especially those yearning for the American Dream, corporate America has successfully increased profits. Almost everyone on earth is feeling the negative effects of corporate America’s actions. By outsourcing labor, prohibiting unions, disadvantaging women, and driving wages down, globalization and corporate expansion advocates for inequality in both the United States and the rest of the world.

It’s likely that the paper that this essay is printed on was produced in the Amazon forest, processed in a South American Factory and shipped on a German made ship to different countries. This is just one aspect of Globalisation. More globally globalisation reflects interconnectivity of markets, people and culture around the word. Today’s world is interconnected like never before, and corporations are trading, expanding, and employing across the continents. Multinational businesses are changing the way that the world works, having new and far-reaching impacts on their customers, business partners, geographical bases, and their suppliers – from established concerns to the independent farmer or craftsperson. The term globalisation is one that is used with ever increasing frequency as if it had a universally accepted meaning and definition. According to Modelski, globalisation is a historical process which is characterised by a growing engagement between peoples on all corners of the globe (Modelski, 2003, pp.55-59) The main aim of this essay is to explain the process of globalisation, and to critically analyse one business in which has been impacted by globalisation, I will be focusing on The Starbucks Company throughout this essay. The main case study which will be referred to throughout this essay is the worldwide brand Starbucks, which has become a global company as a result of globalisation. The essay will start by defining and explaining globalisation. It

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

❑ Globalisation: Nestle Bangladesh itself is an entity of globalization. Nestle has been operating in many subsidiaries. To cope up with international business barriers, they most likely follow a

Events in resent history have made a clear statement to the executives of the world that Globalization and Corporate Social Responsibility (CSR) are tightly linked in projecting a positive brand image. Most of the negative publicity surrounding the globalization debate is directed at one key area, the perceived lack of corporate social responsibility in the business culture of the developed world. The European Commission defines Corporate Social Responsibility as, “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."(European) As the heat is turned up on firms,

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).