Inic’s Have Been and Continue to Be the Driving Force of Globalization. to What Extent Do You Agree with This Statement?’

‘Newly industrialised countries have been and continue to be, the driving force of globalisation.’ To what extent do you agree with this statement?

Globalisation is a force that became the buzzword of the 1990s. Various countries around the world have experienced a thrilling increase in trade, innovation transfer and cross-border investment flows in recent years. The effects of globalisation and the evolution of the most developed economies are difficult to separate and a few authors believe the effects of multinational enterprise to be a defining feature of globalisation (Strange, 1986).

Transnational corporations help control the economic market in developing countries. TNCs do this by helping the balance of payment export material as a result of increasing the Growth Domestic Product (GDP). An example of this would be manufacturing where companies such as Walmart are much wealthier and larger. By manufacturing plenty of products to larger companies,

The term ‘corporation’ encompasses a range of corporate structures including subsidiaries, holding companies, and joint ventures. ‘Transnational corporations’ are those corporations (and their related entities) that have operations in more than one state. Such entities are able to operate across national borders, sell products and source labour in multiple markets, and shift production, resources and expertise as and when required. There is no doubt that global firms are engines of prosperity and growth across many areas of the world. Corporations generate valuable employment and educational opportunities, revive living conditions in flagging communities with much-needed investment and new technologies, and enhance the prosperity of those states able to ride the globalization wave.

Transnational Corporations (TNC’s) play a large role in the development of the global economy, through the sharing of research, trade and technological advances between the different countries. They also play a big part in increasing the interconnection in the world’s economic, cultural and political systems, otherwise known as globalisation. Nevertheless there are both positive and negative impacts that TNC’s bring to the global economy, socially, economically, politically and culturally.

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

After reading the PPT. file and watched Globalization pro and con video, I saw that both of the globalization and TNC's, can be good or bad.

Economic globalisation can be defined as the process through which national economies, to a larger or lesser extent, have been immersed into a global economy (Haywood 2011: 10). According to Göksel, economic globalisation involves production, distribution, management; trade and finance. The fundamental features of economic globalisation are transnational corporations (TNCs), which have greatly speeded up integration of the global economy and brought about change at national and international level and the transformation in financial markets, where financial flows have increased resulting in portfolio-type transactions and the integration of national capital with international financial capital (2004: sam.gov.tr/wp-content/uploads/2012/02/01.-NiluferKaracasulaGoksel.pdf). Through economic globalisation, markets have become superior over the governments of states, which results in states losing

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

The world has continuously changed for improvements and innovations. The earth is not huge enough to limit human interactions. People are shifting from a world in which national economies were isolated from each other by barriers and cultures to cross border trade and investments. Nowadays, people around the world are more connected to each other than ever before. The revolution of sciences and technologies has gradually improved human livings. It is much easier for people to travel, communicate and do business internationally. As a result, demand for expanding economy to countries urges the foundation of globalization. Integrating into the global economy offers multinational companies not only opportunities to disperse their industries

Nowadays people have become closer than before. Services and goods produced in a country will be available to sell in the other countries. We hear about globalisation in the news every day, read about it in the news papers and hear people talking about it. Globalisation is the interactively international and nearness of economies.

India is a nation that in recent years has been affected greatly by processes of globalisation. India has truly felt the forces of globalisation as it has morphed the very nature of the nations’ economic and societal processes.

In the last few decades of the 20th century, the rapid transformation of the industrial world took a new form. The economy is one of the areas experiencing striking changes in these times. What is certain is the emergence of multinational companies, to some extent, open up opportunities for economic globalization. The economic growth in the 19th century in many developed countries are originated from international capital movements that growing rapidly at the time. Mobility of factors of production that occurred between the states reached its breaking point with the presence of multinational companies. Perhaps, the most important developments in international economic relations during the last three decades is the amazing surge of strength and influence of large multinational corporations. They are the main distributor of various factors of production, capital, labor and production technology, all in a massive scale, from one country to another.

There is a general consensus (Rodrik, 1997; Frankel, 2000; Hemmer, 2001) that the driving forces behind economic globalisation are a reduction in transport and communication costs in the private sector, reduced policy barriers to trade and investment by the public sector, an increase in the availability of and access to information and technology and the speed with which information and technology can be transmitted across national boundaries. The most important aspects of economic globalisation therefore include the breaking down of national economic boundaries, the liberalisation of international trade, finance and production activities and the growing power of transnational corporations and international financial institutions (Khor, 2000:3). Economic globalisation therefore manifests itself in various forms such as an increase in international trade, financial flows and foreign direct

Globalisation is considered one of the greatest milestones that have happened to the world. Before 25 years or so, no one imagines that s/he can buy a shirt or even a mobile cover from a different country by their selves and it will be shipped in few days. Although the term globalisation is founded in the nineteenth century, the application of this concept become obvious and widely use in the last 25 years (Dicken, 2007). The next section of this report defines globalisation term. In addition, the third section mentions some of the positive and negative impacts of globalisations. The fourth section discusses the impacts of globalisation on how business operates. Finally, the last section concludes the report.