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Globalization - MNC, image, image - Coggle Diagram
Globalization - MNC
In BM, globalization refers to the process of greater integration and interdependence of businesses and economies throughout the world. It is often described as a greater degree of international economic interdependence. This then means that decision-making and business strategies in one part of the world will have a direct impact on organizations in other parts of the world economy.
Positive Impact
Entering international markets enables businesses to benefit from a larger customer base and economies of scale
Globalization also tends to increase job opportunities around the globe (helps to reduce transportation and distribution costs)
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Globalization creates many opportunities for businesses looking to grow and evolve in overseas markets
Negative Impacts
The pressure to expand overseas can be overwhelming. It is complex, challenging and expensive to operate in global markets.
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The pursuit of growth and expansion of multinational : companies (MNCs) has been a major contributing factor for the accelerated pace of globalization. The impact has both positive and negative consequences on the growth and evolution of businesses.
Positive Impacts
MNCs can provide a range of benefits to local businesses, directly or indirectly
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MNCs create increased competition for local suppliers, forcing the domestic businesses to improve their operational efficiency.
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The host country’s government benefits from profitable multinational companies as they pay corporate taxes
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