TNCs and Globalisation

TNCs and Globalisation This is not just true for the industrialised world. It is a global phenomenon. And no wonder ! The latest official figures indicate that there are now more than 37,000 transnational companies controlling almost a quarter of a million subsidiaries. Ninety per cent or 34,000 are based in industrialised countries. Just over half of their subsidiaries are operating in the Developing World. 56% of the parent corporations have their base in the European Union but only 24% of their subsidiaries operate within European boundaries. The number of multinationals is growing daily and increasingly have a base in the newly industrialised countries. These companies have a major impact on home and host country output, demand patterns, trade and technology flows and employment and labour practices. They also set the tone for the structure and pattern for competition in their sector. Transnational companies are continuing to expand their activities and at a rapid rate. One can see this when measuring foreign direct investment flows. During the 1990´s there has been a major growth in flows to developing countries. The increase was 32% in 1992; 55% in 1993 and between 1983 - 1993 the increase was fivefold. The reasons for this are straightforward. Transnational companies are searching for lower cost sources of production and the greater flexibility offered by developing

  • Word count: 905
  • Level: AS and A Level
  • Subject: Economics
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Global and Transnational Management.

PREPARING FOR THE FUTURE: EVOLUTION OF THE TRANSNATIONAL SUMMARY AND ASSOCIATED CURRENT DEVELOPMENTS Prepared By: Stephen Shank and Scott Stiverson Professor: Dr. Nabarun Ghose Global and Transnational Management MGT614 (90) Tiffin University Spring Term I - 2004 February 4, 2004 Tiffin University Identification Numbers: 3108 / 0862 SECTION I - CHAPTER SUMMARY INTRODUCTION In the 17th century, English dramatist and novelist Henry Fielding quoted "Now, in reality, the world have paid too great a compliment to critics, and have imagined them to be men of much greater profundity then they really are." This statement applies to critics of Multinational Corporations (MNCs) who have been quick to point-out the difficulties companies had during the recessionary period of the late 20th and early 21st centuries. American giants such as Ford and Boeing as well as established European firms (ABB, Olivetti, and Philips) and even Japanese firms (Mazda, Yamaha, Toshiba) have struggled mightily and have been vulnerable targets for critics. These critics contend this trend will continue, and MNC's will eventually collapse to the hands of more "agile1" corporate structures that are better suited to keep pace with continuously-evolving markets and technological advances. However, as writers of this paper we are in concurrence with the text authors that MNC's are not in

  • Word count: 3205
  • Level: University Degree
  • Subject: Business and Administrative studies
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Exploring Conflict, Culture and Identity Questions.

Sociology - Keith Topic 3- Exploring Conflict, Culture and Identity Questions Q1. Ideology is the transmission of ruling class norms and values as normal via the cultural institutions such as family, education and media. These norms and values justify the capitalism system and give the impression that the capitalist society is meritocratic. For example the education system socialises the working class children to believe that their educational failure is due to lack of ability and effort, when really it is because the capitalist system fails them purposely in order to maintain that they will remain working class and continue with factory work etc. Television also socialises the working class into believing that consensus is the norm and that serious protest about the way society works is 'extremist'. Q2. The mass media socialises the working class into a conformist identity by transmitting the ruling class' idea that if you work hard you can get on. They convince the working class that they deserve what they have through advertising and popular culture like television, cinema, music and newspapers. For example, the law socialises the working class into believing that it is on their side when in reality it mainly supports and enforces the values of the capitalist ruling class. Television socialises the working class too. It transmits the belief that consensus is normal and

  • Word count: 816
  • Level: GCSE
  • Subject: Sociology
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Employee development (ED).

Employee development (ED) "The purpose of ED can be defined as developing human potential to assist organizations and individuals to achieve their objectives". (Redman &Wilkinson, 2001 p.129). Since the impact of the globalization, the new positioning and competitive competences of the company will bring the HR department new challenges of finding effective career paths for their global employees. "A study conducted by the Global Leadership Institute shows a positive relationship between the level of employee internationalization and the organization's Return on Assets." (Black et al, 1999, p1). That's why according to Black "an international assignment is the single most powerful experience in shaping the perspective and capabilities of effective global leaders...A global assignment play important roles in succession planning and leadership development; in coordination and control; and in technology, innovation, and information exchange and dissemination." "According to a survey by the National Foreign Trade Council, the number of Americans working overseas, jumped 30% in 1995. Of the 74 companies the NFTC polled, 71% said they expect this growth to continue." (Hayes et al, 1996) "However, somewhere between 25and 40 per cent of foreign assignments fail in US transnationals." (Stonehouse et al, 2000,p.210). In fact, 20% to 48% of expatriates leave their companies within

  • Word count: 732
  • Level: GCSE
  • Subject: Business Studies
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Briefly describe the history of the car industry, focussing on its locational changes.

Locational Case Study The Growth and Spread of the Car Industry Briefly describe the history of the car industry, focussing on its locational changes. The first motor car was built in 1885 by Karl Benz, but it was the USA that established early dominance in the industry by introducing production-line assembly. Whilst global production is still dominated by developed countries, a number of developing nations, e.g. Brazil and South Korea are improving their production rates. The industry became multinational in 1911 when Ford chose Manchester as the first location outside of the United States. In the UK, the country was selected by three of the leading Japanese manufacturers (Nissan, Toyota and Honda). After a collapse of production from 1975 to 1982 in the West Midlands, there was room for new industry and companies to move into the area to make use of the experienced labour. Nissan began in Sunderland from 1986, and Toyota and Honda followed in Derbyshire and Swindon respectively in 1992. With the introduction of new car models, the lead manufactures decided to create new plants for these models specifically. Toyota chose to locate the third factory at Lens, northern France. A change in the corporate structure of manufactures has also influenced the locational changes. For example, Rover, previously owned by BAe was bought by BMW in 1994 began investing billions of

  • Word count: 828
  • Level: GCSE
  • Subject: Business Studies
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The role of WTO in China.

 AFM BSc Business Management (with English) BUSINESS AND ETHICS By Waiqiao Cheng Tutor Dave 3-05-02 THE ROLE OF WTO IN CHINA Introduction China completed a 15-year quest on 10th November in 2001 in the Qatari capital of Doha to join the World Trade Organisation (WTO). It brings a market of 1.3billion people into the global system and changes the way China dose business with the world. France's finance minister Laurent Fabius said, " We are talking about the WTO. Yet the 'W ' without China is not the World. Now it will be." It indicates the entry of China - the world's most populous nation into the World Trade Organisation is inevitable. WTO membership will open more markets for China's rapidly expanding economy. It means China is mastering enormous opportunities. But it will also make China's industries into merciless foreign competition as tariffs are lowered. Tense of millions of people could loss their work. China is facing more challenges also. As a result, joining the WTO will impact on the economic, political and social life in China within a decade. The Impact of WTO Entry On China's Economic By the report (the report is about WTO accession to China), we can draw four policies: cutting tariffs on industrial products; phasing out non- tariff barriers in industrial departments; liberalizing agricultural trade; and phasing out the

  • Word count: 1303
  • Level: University Degree
  • Subject: Business and Administrative studies
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Globalistion has brought improved inter-relationships

"Globalisation has brought improved cultural, political and economic inter-relationships between societies." To what extent do sociological arguments and evidence agree with this view of world development? Cohen and Kennedy suggest that the function of sociologists today is to provide a 'sociology for one world', i.e., a global society that investigates and analyses the increasing interconnectedness and interdependency of the world. This is known as 'globalisation' - the emergence of a global economic and cultural system which, allegedly, is incorporating the people of the world into a single global society. It has been said that globalisation has brought improved cultural, political and economic inter-relationships between societies. Cohen and Kennedy argue that globalisation needs to be understood as a 'set of mutually reinforcing transformations' of the world. These include the following: - Changes in the concept of time and space - Mass travel enables us, through tourism, to experience a greater range of other cultures, this improving cultural inter-relationships between societies. - Economic markets and production in different countries - are becoming interdependent because of the growth in international trade, the new international division of labour, the growing influence of transnational corporations and the global dominance of organisations like the World Trade

  • Word count: 1266
  • Level: AS and A Level
  • Subject: Sociology
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The Role of Technological Change In Asian Growth

THE ROLE OF TECHNOLOGICAL CHANGE IN ASIAN GROWTH Technology has been recognised as a major driving force behind industrial progress and structural change, enabling countries to increase their competitiveness and hence their share of international trade. This has been demonstrated in recent decades by the development experience of the so-called 'Asian tigers' which have increasingly absorbed modern technology and integrated it into productive activities, thus expanding their output, increasing employment, improving skills, raising productivity and generally growing in economic strength (Dept of Foreign Affairs and Trade, 1997). In order to understand the way technology impacts economic development within the newly industrialised economies (NIEs), this discussion will firstly concentrate on the some of the issues that affect the relationship between technology and economic development. Mainly, the issue of technology transfer becomes of most importance when considering the forecasted success of an NIE. Will comparative advantage be found through gradual learning and adaptation? Or will countries succeed 'leapfrogging'? Moreover, the discussion will also look at the involvement of indigenous research and development and its contribution to achieving competitiveness, as well the foreign investment and its effect on industrial development. Furthermore, the economic history of

  • Word count: 2881
  • Level: University Degree
  • Subject: Business and Administrative studies
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Who Benefits From Neo-Liberal Globalization?

THE FRUITS THAT ARE BORNE OF TEARS Who Benefits From Neo-Liberal Globalization? Neo-liberal globalization represents the materialisation of 'Neo-liberalism', a collection of economic policies developed during the last twenty-five years, which rely on a set of simplistic assumptions about human behaviour. In practice, neo-liberal policies bear grave social and ecological consequences, undermine democratic principles, and ensure the rich become richer while the poor become poorer. Ultimately, nobody benefits from the creation of a dichotomous world. Consequently, despite its competitive focus, the neo-liberal system produces no winners. Neo-liberalism originated as a new form of liberalism, a theory prominent throughout the late 19th and early 20th centuries. Liberal theorists championed free trade, free competition, the elimination of government intervention in economic affairs, and individual liberty. Economist John Keynes challenged liberal economic policies during the Great Depression of the 1930s. Keynes believed that economic growth could only occur if employment was increased through government intervention. Keynesian theories were eventually supplanted by neo-liberalism.1 Explanations differ as to what led to the rise of neo-liberalism. One proposition is that a few economists from Chicago University, including Friedrich von Hayek and Milton Friedman (the 'Chicago

  • Word count: 3063
  • Level: University Degree
  • Subject: Social studies
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Examine the rise of the Celtic Tiger(TM) and critically assess the benefits it is said to have brought to Irish society.

Examine the rise of the 'Celtic Tiger' and critically assess the benefits it is said to have brought to Irish society. Celtic Tiger is a name for the period of rapid economic growth in the Ireland that began in the 1990s and slowed in 2001, only to pick up pace again in 2003 and then have slowed down once again by 2006. During this time, Ireland experienced a boom in which it was transformed from one of Europe's poorer countries into one of its wealthiest. The causes of Ireland's growth are the subject of some debate, but credit has been primarily given to free market capitalism: low corporate taxation, decades of investment in domestic higher education, a low-cost labour market, and a policy of restraint in government spending, in addition to transfer payments from the European Union. This essay will examine the rapid rise of the 'Celtic Tiger' and outline and assess the benefits this growth has said to have brought to Irish society. For a generation after achieving independence from the United Kingdom in 1921, Ireland sought to be economically self-sufficient. It relied on small-scale agriculture, exporting primary produce to the U.K. market and manufacturing mainly for the home market of less than 3 million people. Trade barriers such as high tariffs and a policy of import substitution sought to make this reliance on economic nationalism successful. The country was

  • Word count: 1575
  • Level: University Degree
  • Subject: Social studies
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