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Multinationals are the corporations that manage production of goods or deliver services in two or more countries. Multinationals support globalization owing to various reasons such as market-seeking and efficiency-seeking.
Globalization is not inevitable in the absence of multinationals. Undoubtedly, multinationals go global because of market-seeking. They invest in specific countries or regions so that they can supply services or goods in those as well as the adjacent countries. Market-seeking foreign direct involvement implies that a multinational corporation develops subsidiaries to cover the host country markets. For instance, write my paper hub, in the Central and Eastern Europe section, rapid economic growth and a large under-served market has prompted a market-seeking foreign direct investment.
High demand from both private and public healthcare results in an increase in sales of generic and branded drugs although the generics take the lead as a result of a low purchasing power compared to the West. Efficiency-seeking is another factor that encourages multinational companies to support globalization. Efficiency-seeking foreign direct investment carries the sole aim of restructuring current production through rationalization as well as discovering some sections of the value chain in locations which offer lower costs.
For instance, in the Central and Eastern European nations, efficiency-seeking foreign direct investment is attracted by low labour cost, manufacturing cost and other operational costs Costa, Duysters, write my paper hub, and Dolfsma,p.
This implies that multinationals will decrease their expenditures, while increasing their profits. Local and national governments habitually compete to attract multinational corporations with the anticipation of improved tax revenue, employment, and write my paper hub activity.
Write My Paper Hub. Some political entities offer multinational corporations an inducement, for instance, tax breaks, subsidized infrastructure, lax environmental or labour regulations.
Most multinational corporations will take advantage of the reduced tax burden or subsidized labour costs to participate in the globalization process. Consequently, they adapt to the production processes which conform to the standards of most rigorous jurisdictions they operate in Haufler and Runkel, Multinationals use advertisement to market their products and prop up the globalization process.
For instance, most multinational corporations use the Internet and television write my paper hub advertise their goods and services. Multinationals carefully consider the methods they use to advertise their products since different countries have different traditions and cultures.
For instance, in Western nations, sex appeal is often used in advertising of a wide array of products, write my paper hub. This captures attention of the consumers and is likely to boost sales. Nonetheless, this approach cannot be effective with the nations which are extremely religious; for instance, Arabic countries. In these countries, most people, in particular girls, are habitually covered and they will not be wearing exceedingly revealing clothes. Consequently, the ads which portray sex symbols, like girls in bikini, cannot be broadcasted in such countries.
In other words, companies fine-tune their advertisements to the ethnic group of their clients so that their products can be purchased, write my paper hub. Individual decisions play an essential role in multinationals enhancing globalization. Many a times, write my paper hub, when people think about who performs work for multinational corporations, what they do, write my paper hub, where they are located, why and how they operate, they pose the key questions to globalization.
To a large extent, globalization is steered by the individual actions by political and economic actors. For instance, it can be the personal resolution of a German inhabitant of Indonesian origin to work for a Mexican corporation in the Czech Republic. Without these specialized managerial skills, multinational corporations cannot operate across national borders Dierks,p. Multinationals encourage globalization because they intend to move closer to their customers. Strategic alliances result from large multinational organizations decentralizing as well as networking with the minor firms which contend in the same marketplace, write my paper hub.
Giant multinational corporations decentralize their large-scale write my paper hub centres, promote innovation, and get nearer to their clients.
For instance, the write my paper hub for corporations such as IBM is to encourage employees with various traditions, cultures, and religions, write my paper hub, whereas the nimbleness of minor organizations speeds responsiveness to the clients Dierks,p.
Most multinationals have embraced advanced technology e. an interactive website which is indispensable in support for globalization. This helps the multinational corporation improve on its products or make the necessary adjustment as required by the client. This contributes to globalization since the multinational will enhance its products and write my paper hub spread to other countries, which would have never happened if not for the newly write my paper hub technology.
Multinational corporations support globalization through strategic alliances, dynamic and flexible cooperative agreements between firms across national boundaries. Presently, this has expanded to comprise various partnerships between customers, suppliers, and competitors. In some cases, these cooperative arrangements are in the form of acquisition or mergers.
Sometimes, write my paper hub, large organizations merge with or acquire other giant multinational organizations when reacting to growing competitive pressure imposed small entrepreneurial firms. In some cases, cooperative arrangements targeted production, research, distribution, or marketing inter-firm partnerships, encouraging the partners to change their corporate strategies to suit the demands of local and global customers, hasten technical cooperation as well as upgrade capital-intensive industries Dierks,p.
Brain drain is a major issue in developing countries; however, multinational corporations support globalization and reduce brain drain and its impacts. This has prompted multinational corporations to establish their business in both more developed and less developed nations. Multinational corporations offer attractive salary packages and good working conditions to managers and other professionals.
This eventually results in the reduction of brain drain. Multinationals help support the globalization process by doing business with the nations that have fewer restrictions and can enhance their business growth. Most multinationals are potentially susceptible to a random state intervention, for instance, an abrupt contract renegotiation, write my paper hub, arbitrary withdrawal, or the compulsory acquisition of licenses, among others.
These are but some of the factors that multinationals take into consideration before finally deciding to do business in a particular country. When the regulations are favourable, the multinational corporation will do business in that country.
Consequently, this augments the globalization process. Multinationals function in the light of various factors enhancing the globalization process, e. Skip to content Essay Writers: Discuss the key leaders and historical events that have influenced the advancement of nursing, nursing education, and nursing roles that are now part of the contemporary nursing profession.
In the first two written assignments, you selected one vulnerable population in need of a new program or service in your community. Top Menu Login Order Now. Write My Paper Hub Some political entities offer multinational corporations an inducement, for instance, tax breaks, subsidized infrastructure, lax environmental or labour regulations.
Write My Paper Hub Consequently, they adapt to the production processes which conform to the standards of most rigorous jurisdictions they operate in Haufler and Runkel, Write My Paper Hub For instance, in Western nations, sex appeal is often used in advertising of a wide array of products.
Multinationals adapt their management approach to better suit the write my paper hub culture. Write My Paper Hub Presently, this has expanded to comprise various partnerships between customers, suppliers, and competitors.
Write My Paper Hub Multinational corporations offer attractive salary packages and good working conditions to managers and other professionals.
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