Globalization

Globalization

Subject line

In this paper we will discuss the factors that have contributed in the globalization. Similarly, we will also discuss the role of the international community. After discussing the globalization generally, we will also discuss the multinational corporations in the globalization.

Introduction

Globalization has become increasing phenomenon, the technology and the internet has played an important role in expanding and enhancing the globalization (Sassen, 1999). Due to globalization the whole picture of the world has changed and now due to globalization everyone can link one another in the world without much difficulty. It is the role of the globalization that the distances between the continents and countries have reduced and shortened. Due to technology and more particularly, with the help of internet anyone can communicate easily with any person in the world. Due to globalization also the nature of many businesses has changed, particularly the multinational corporations have changed their strategies and processes.

Discussion

The globalization is not a very old phenomenon; it started due to the rapid development and growth of the technology. The advent of the internet was a major factor in strengthening the process of globalization. The globalization has not only affected the modern businesses but on the other hand it has impacted every sphere of life including religion and politics (Bauman, 1998).Due to globalization most of the international agencies were made whose aim was to perform certain tasks for the all the countries. Some of these agencies are like IMF, World Bank and UN. These all agencies were made because it become pertinent due to globalization that the problems of all the countries must be addressed carefully and peace should prevail throughout the world (Sassen, 1999).

Impact of Globalization on the Multinational Corporations

The corporations before the advent of the globalization had limited business mostly in only one country but due to the rapid development of the globalization today most of the businesses have extended their operations in a number of countries ( Edwards, & Rees, 2006). The main motive of the multinationals was to increase their profitability and at the same time increasing their business. Another motivation of most of the multinationals was the reduction of costs. Due to the globalization, many multinationals have been greatly benefitted. The multinationals started to outsource some of their core functions in the developing countries due to availability of cheap labor in these countries. Furthermore, the other operational costs were also lower in the developing ...