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Evaluation of Challenges a Mnc Faces Due to Globalisation

   

Added on  2020-02-03

9 Pages2590 Words66 Views
Business DevelopmentLeadership ManagementProfessional DevelopmentLanguages and Culture
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Critical Issues inBusiness Management
Evaluation of Challenges a Mnc Faces Due to Globalisation_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK ..............................................................................................................................................11) Main drivers of globalisation..................................................................................................12) Evaluation of challenges of globalisation for a multinational company................................2CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7Books and Journals.....................................................................................................................7
Evaluation of Challenges a Mnc Faces Due to Globalisation_2

INTRODUCTIONGlobalisation can be defined as the process in which world is getting increasinglyconnected because of increase in exchange of culture and trade. Due to globalisation, businessesare operating on an international scale and develop international impact. It is the integration ofeconomies, culture, trade, market and ideas worldwide through global network ofcommunication, transportation and immigration (Thun and Hoenig, 2011). Globalisation hasreduced trade and culture barriers and changed the ways of doing business. The present reportfocuses on analysing main drivers of globalisation and evaluation of challenges a MNC faces dueto globalisation.TASK 1) Main drivers of globalisationThe major drivers of globalisation are technological innovation, advancements in culture,politics and economics. These can be separated into 5 different groups :Technological innovation : The main foundation of globalisation lies on advancementsand innovation in technology (What are the main factors driving globalisation? 2015).The emerging technologies have made the world a smaller place and made it easier totrade across the globe by reducing trade, cultural and other barriers. Technology enablesa company to develop new and innovative products, manage and standardise theseproducts and services. Worldwide communication with suppliers, employees andcustomers has become easy to ensure coordinated global efforts.Social and Political reforms : Various social factors such as enormous populationgrowth and consumerism in countries such as Japan, India and China have createdopportunities for new customers worldwide (Wheelen and Hunger, 2011). Liberalisationof trading policies and reduced tariff rates have enabled foreign direct investment on aninternational scale and created new markets and business partnerships. Some of the majorexamples of developments are World Trade Organisation (WTO), General Agreement onTariff and Trade (GATT) and privatization in Eastern Europe.Development of transportation system : One of the major revolution in the industry isinnovation in transportation technology which has enabled people and organisations toreach different places easily. Development of transportation system allows fast and1
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