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Franchising Essay

725 words - 3 pages

Hypothetical Essay Titles With the aid of examples: "¢ Explain the term globalization and what it's effects have been upon modern organizations? "¢ Discuss the major characteristics of multinational enterprises (MNE's) and how they typically manage their internationalization process? "¢ Outline are the cultural implications for managers as the internationalization process matures? What is Globalization? "¢ "The production and distribution of products and services of a homogeneous type and quality on a world wide basis." (Naylor, 1999) "¢ Move away from production and sales in a domestic environment."¢ A response to a changing competitive environment.Difference between the terms Internationalization and globalization "¢ Internationalization is the increasing geographical dispersion of economic activities across national boundaries. (We will revisit later in the seminar.) "¢ Globalization is an advanced form of internationalization which implies a degree of integration between internationally dispersed activities.Features supporting Globalization (cited in Naylor, 1999; Daft, 1994) "¢ Accommodation among political systems."¢ Open world economy."¢ Increasing awareness and respect for other cultures."¢ Development in communications."¢ "˜Global village' effect.Overview of developments There has always been international trade, but now there are many regulatory bodies: "¢ NAFTA; ASEAN; EU "¢ International trade negotiations - The General Agreement on Tariffs and Trade; The Treaty of Rome & The Single European Act "¢ The World Trade Organization (WTO).Drivers of Globalization (cited in Boddy and Patton, 1998) "¢ Increases in innovation and technology."¢ Accelerated growth of Foreign Direct Investment."¢ The growth of intra firm trade (Make or buy in one country and export to another)."¢ The growth of complex supply arrangements - joint ventures, mergers & acquisitions.Causalities of Globalization "¢ Geographical effect - 1st versus 3rd world economies."¢ Multinational dominance effects decolonisation - recolonisation."¢ Weakening of national cultures, languages."¢ Greater disparity between rich and poor.The rise of the Second Global Economy "¢ 1st global economy was producer dominated."¢ 2nd global economy is more sophisticated."¢ Change in international transactions."¢ Advanced consumerism.Who are the players in Globalization - the MNE's "¢ Generally, headquarters are in the home country but the operations are in others."¢ GM, Ford, Mitsui, Mitsubishi, etc see page 133."¢ The clustering effect of the EU, S.E.Asia and NAFTA countries are important for MNE's.Three...

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