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Strategies Essay

2335 words - 10 pages

Globalization can be seen as reduction in barriers between countries. Globalization has opened the world market for international trade. The movement of globalization have contributed to the spread of knowledge, culture, technology, and information across borders. The increasing role international expansion across border has also increased the focus of multinational corporations to international business strategies. Organizations today in developed nation or in developing nation are going international due to increase in competition. They want to expand their limits beyond local region. Competition in domestic market and pressure to expand the business are the few reasons for the globalization. The following are the few advantages of globalization.
a) No Trade Boundaries:
Before globalization it was very difficult to trade your product other countries. Post globalization it has reduced the barriers in international trade. An organization can trade their product at any part of the world. In modern multinational corporation’s sales, marketing, production is based in different country to capitalize location advantages.
b) Dynamic Work Environment:
Globalization has bought a revolution in world economy. Globalization has increased the rates of mergers and acquisition. The increase in competition between the multinational corporations across the globe has increased drastically. Work environment has changed a lot post globalization,
c) Information Technology:
Improvement in information technology is due to the impact of globalization. The one which has the best potential to change the shape of international management is the advancement of technology. An organization can operate from one end of the world to other end. Technology is changing every moment in today’s world.
Organizations of all sizes go internationals for many reasons. One of the most common things where company goes international is competition. Global trends and competitive forces have put huge pressure on multinational corporations to adopt strategy of globalization. Multinational Corporation of emerging market is growing strong since last two decades. Globalization has increased the level of competition so high that the multinational corporations are expanding their limits beyond boundaries. These MNEs are very strong in their domestic region and since globalization foreign corporations are taking their market share in the domestic market and to survive it is crucial to enter new markets to expand their operations globally. Globalizing an organisation is not easy as it seems it is especially for the MNEs from developing countries. As compared to the multinational corporations of developed countries it is difficult for the MNEs of developing countries to pursue globalization. BRIC countries are the emerging market with great potential for growth and is been targeted by MNEs of developed countries to enter this potential market and take advantages...

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