Opportunities for the Multinational Enterprise Term Paper

Opportunities for the Multinational Enterprise - Term Paper ExampleThe meaning of Globalisation lot easily be interpreted from the word itself. It is nothing but going multinational. When people realized that they cannot survive from the resources that they had available in their vicinity, they began exchanging heavys with their neighbors, which got expanded to exchange with new(prenominal) countries, organizations, etc. This exchange of goods for goods, or the Barter system, gradually turned into import and export of goods mainly based on availability, or technically the lack thereof, which brought more or less this whole cycle. When focused from an overall survey, the term globalization is something, as part of which common people, organizations, etc interact among themselves in different spheres of their lives, including cultural sphere, financial sphere, etc, etc.. Globalization may be thought of as the widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social life, from the cultural to the criminal, the financial to the spiritually. (Wiley, Nandi and Shahidullah 1998, p.21). Although from the preceding(prenominal) definition, one can infer that globalization can be referred to each form of global integration or interaction, the fact, it is mainly used with an economic perspective and multinational vocation, and the resultant interaction between organizations particularly Multinational Companies (MNC). The term globalisation involves increasing volume and variety of cross-border transactions in goods and services, free international capital flows and more rapid and widespread diffusion of technology. To make things simpler, we can say that Globalisation is a process of rapid integration of countries particularly MNCs, and how those companies utilizing opportunities in a particular market or an some other country, enter it to do business or another process there. On the other hand, critics of Globalis ation evince the ensuing debate regarding the roles and relationships of corporations and the countrys citizens in maximizing economic development and social welfare. There appears quite a number of challenges for the MNCs while doing business in new markets as part of the globalization. So, this paper first discussing the main forces madcap the globalization process, will explain the opportunities and then the challenges that globalization presents to multinational businesses. Forces driving the globalization process As the various trade and other barriers between the countries got broken, MNCs, using the globalization plank, have entered and are entering into different business sectors. This launching of MNCs into various territories to do business was not a new phenomenon, but an age-old phenomenon, which happened under the guise of imperialism. From time immemorial, various geographical territories, as hygienic as nations, have been indulging in business with one another, to fulfill their product or service wants and shortages, as well as to garner good finances through product sale and thereby strengthening their economies. Even the British entered Indian subcontinent to do business under the tag of British eastern hemisphere India Company. This form of trade has been going on for many centuries, however, certain countries in different points of their history have put certain restrictions on trade with other countries or enterprises due to political, financial as well as other social reasons. That is, this trade based entry started transforming into imperialism, as the European and other westerly powers, tapping the weakness of the Asian and African ruling powers, eventually captured the nations territories and started to rule them. This set a bad precedent, and after independence many countries started actualizing a protectionist regime, preventing or circumscribe entry of foreign organizations. These countries or territories did not allow the ent ry of foreign companies as well as its products and even went to the extent of preventing its own companies to do any business with the foreign companies.