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The Growth Of The Global Economy

2584 words - 11 pages

West London International Business School

Master of Business Administration

Global Business Practice

Assignment One: Critically assess the changing relationships between TNC’s and nation states, comparing their respective roles, objectives, flexibility and power.

Acknowledgement


Table of Contents

Acknowledgment

Table of Contents

Introduction

1 The Growth of the Global Economy

1.1 Globalization
1.2 The role of Technology

2 The Nature and Purpose of the Nation State

2.1 Ways in which the Nation State can achieve its Objectives
2.2 Examples of Successful and Failed states

3 The Nature and Purpose of the TNC

3.1 How specifically a TNC combines aspects of global, Multinational and International companies

4 The Relationship between the state and the TNC

4.1 Conflicting and Complementary Objectives
4.2 Ways in which the state/TNC each seek to achieve their objectives
4.3 The impacts of Globalization on the State and the TNC
4.4 Examples of the tensions between the State and the TNC

5 Influences affecting the actions of the State and the TNC

5.1 Role of Global institutions
5.2 Role of C.S.O’s
5.3 The growing significance of Corporate Social ResponsibilitY

6 Conclusion

Introduction

This assessment is done to critically assess the changing relationships between Trans National Corporations (TNC’s) and Nation States.

In the present world where globalization had caused major impacts on both TNC’s & Nation States which in turn had also influenced their roles, objectives, flexibility & power.


1 The Growth of the Global Economy

1.1 Globalization

The International Monetary Fund (IMF) has defined Globalization as the increasing integration of economies around the world, particularly through trade and financial flows. (IMF - 2000)

Globalization is the increasing interdependence & interconnection between nations around the world in the aspects of economy, trade, culture, technology, labour etc.

As per Peter Dicken one major characteristic of global economic growth is the increasing interconnectedness of the global economy. The below graph shows the increase in percentage of global trade from 1960-2007 which demonstrate the acceleration of globalization due to increasing interconnectedness due to global trade.

1.2 The role of Technology

Technological developments on different aspects of transportation, Information & communication, production methods & processes, lean & flexible manufacturing have enabled the growth of the global economy.

As an example the development of transportation technology we can compare the average speed of electric trains to that of steam trains which is very much higher. This means passengers & goods can move from one destination to another much faster which will result in increased efficiency & flexibility, enabling the growth of the global economy.


2 The Nature and Purpose of the Nation State

2.1 Ways in which the Nation State can achieve its Objectives

Fiscal...

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