Globalization and the Mnc

Eden L. (1991) identifies three main comp atomic number 53nts of globalization: 1.Convergence harvestingion, financial, engine room structures approach a common average standard 2.Synchronization- tendency for lead nations (EU, Japan & USA) to move in tandem, experiencing the same business round of golf patterns 3.Interpenetration- the growing importance of trade, investment & technology in separately domestic economy globoseization is manifest through: The rapid harvest-festival in multinational trade and international financial f smalls The personal manner economic booms (or recessions) spread more readily from one enation to the next The growing occurrence of mergers, acquisitions, & strategic alliances Opinions on Globalization: It has enfeebled the state/undermines or limits the sovereignty of countries National governments are not fit to independently decide their exchange rate, interest rates, investment. Output impact (negatively) by market forces Multinational Corporations (transnational) MNCs are the agents of increased international interdependence They dominate all underlying structures & substructures of the economy: production, finance, etc They, not markets, ascertain the way in which the flow of capital, finance, products, technology crosses national boundaries.

(John Kenneth Galbraith (1973)) Global Competition & the Firm In a globally competitive constancy: A companys position in one country affects and is affected by its position in some opposite country A firms competitive advantage grows from its oecumenical operations. The rise of the newly industrializing countries (after the 1970s) disproved Vernons Product Life calendar method theory- where the assumption that products are essentially independent of each other and every innovation gave birth to a new product life cycle. High tech products were difficult to establish from low tech industries/products…. Whats mature from whats not at maturity stage? Some MNCs can grow into multiplex international economic... If you want to get a full essay, instal it on our website: Ordercustompaper.com

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