Global Businesses

Global Businesses

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Why MNCs internationalise and the typical challenges can face...............................................2
Select an MNC and analyse how the company could enter an international market that it does
not have a presence.....................................................................................................................6
Introduction.................................................................................................................................6
Analysis of Domestic Market.....................................................................................................6
Strategy to internationalise..........................................................................................................6
Mode of entry, challenges it may find in the country and possible solutions.............................7
Leadership qualities that supports franchising as a market entry...............................................9
Conclusion................................................................................................................................10
Reflection.......................................................................................................................................10
References......................................................................................................................................13

Introduction
Today, global business firm is seen as key factor in promotion of economic growth as
well as employment for a nation but for companies to be success even under their favourable
conditions in order to maintain its competitiveness have to be sustainable, which is the most
challenging before companies (Crane and et. al, 2019). Ultimately, it can be said that both global
business and globalisation are closely linked with each other.
INDIVIDUAL NOTES
European Economic Community
The community was established in 1958, a treaty was formed and signed by Belgium,
France, Italy West Germany and Netherlands. EEC formally known as common market as it was
formed to integrate the economies of Europe. The term community include;the European
Economic Community, the European Coal and Steel community and European Atomic Energy
Community. All the three community were put as one and brought under European Union (EU).
The community worked for free movement of labour capital in the economy, abolition of cartels
and development of joint and mutual policies on labour, agriculture, foreign trade and social
welfare by eliminating trade barriers and create external trade policy. One of the first
achievement of EEC was the created the common price level for agricultural products in 1962.
By the end of 1968, EEC eliminate internal tariffs and common external tariff was made (A
changing EU, 2020). Later on, the community include the following members; Austria, Britain,
Luxembourg, Ireland, Sweden and Denmark. In 1992, the EEC changed to EU after the treaty of
Maastricht. In below followings pros and cons are drawn in context to EU:
Pros.
 It helped in create different jobs and higher wages across the Europe. Even under
uncertainties such as Brexit circumstance, currently the nation is facing, even though
there are employment opportunities and good wages are provided to the workforce of the
Europe because of EU. Since the EU have 28 different country's governing bodies that
are part of it. As this support the local producers to maintain their business at right price
while receive imports as when need arise. At present around 10% of the jobs in Europe
marketplace is directly linked with EU.
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 Industrialization take growth dramatically because of European Union. At the time
of World War2 the nation have to face plenty of scarcity of its resources were felt. The
situation was so serious that even external helps from America was not sufficient to meet
the crisis. Later on, when war over the former enemies like; Germany, Italy and France
come together to create economic pact that helped in re-industrialize the continent. At the
end the relationships become the foundation of EU (Miller, 2021). Thus together the
industrialization growth started to take place.
 The benefit from EU extended to the rest part of the World. The community brought
strength in trade and also value the industries all over the world. By increase in
opportunities in job have helped in developing international relationship as the EU deal
with 28 countries that help each other instead of any separate contracts.
Cons.
 Still many problems are exist in divisions of Europe despite of EU. Many countries
still feel that EU have fail to support the nationalism, problematic governmental structure
and fascism over the years. There are still many cultural and ethnicity difference can be
seen. It is feel that clear division of east and west part of the nation is not made and size
of the place also matter (Pettinger, 2019). There is changes that can be observed from
educational curriculum, press release and through judicial system extreme views are
proposed.
 EU supports and take favour of large countries instead of small. Given in financial
data from 2016 to 2018 for EU- 28, the Germany and Netherlands were prioritized. The
GDP growth in these two nations were raised approximately by 19% and 14%
respectively. Whereas some smaller countries see growth relatively smaller than these
nations even experience decline in growth.
INDIVIDUAL NOTES
Critically discuss why MNCs internationalise and the typical challenges can face
One of the major reason behind internationalisation of any company is the growth factor.
Company in order to remain competitive as per the given environment. For company's growth
and competition to remain strong the marketplace many business leaders chose
internationalisation by adopting suitable strategy for that (Luthans and Doh, 2018). Since the
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