Globalization and Multinational Enterprises
Globalization is changing the way of doing business in the world today. It is the new era of business opportunity. For many major companies, going global is a matter of survival, and it means radically changing the way they work. Economic globalization changes both spatial dimension of MNE's (Multinational Enterprises) and creates a need for more flexible production of marketing systems and new forms of organization. Firms trying to position themselves as global players face problems such as the cost of building a simultaneous presence in several product areas and foreign markets. They must also be able to manage cultural difference and be able to carry out effective cross-cultural communication. Global skills must be an integral part of an enterprise; these skills must be integrated throughout all operations of the company. Managements handling of diversity will be the most significant factor affecting MNE's success in the global marketplace. Whether a company is concerned about the supervisors of minority employees, world trade, joint ventures or global economic cooperation, culture will have a great impact on the relationships and the operations. Edward H. Schein states it perfectly:
Globalization involves doing business around the world in a new way giving companies an opportunity to explore the world market. The idea of a global-player involves low-cost and new customer. In Asia, Europe, and many other parts of the world, there are thousands of service and product markets Schein, EH. "on dialogue, culture and organizational learning" Organization Dynamics, Fall 1993. Vol 32 pp, 40-51 waiting to be filled. The Chinese consumer market is one of the most attractive countries for the global-player. The Chinese economy has been growing rapidly in past decade under its "open-door" policy on foreign trade, investment and finance For example, China is one of the most discussed topics of a business opportunity for global-player around the world. This is because China has a huge and fresh consumer market waiting to be filled; "China is a major imperative for most big multinationals". Indeed for some, such as Coca-Cola, Ericson and Procter & Gamble, the country has become one of their largest markets in Asia or even the world" (Edward Tse, 11). China is the third largest country in the world and its population is about 20 percent of the world's population. Since 1979, China has entered the new era of creating an open-door policy to carry out the construction of modernization. Opening the door to the outside world has developed a newly established special economic zone, which is on the coastal area and the area along the Changing River and much more. "With the progressive improvement of the investment environment and the completion of laws and regulation concerning foreign affairs, more and more foreign investors have come to China" (Fumio ltoh, 5). As a result, import and export have increased from $20.6 billion in 1978 to $195 billion US dollars in 1993. From the Http://www.Chinatoday.co
Some common words found in the essay are:
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Approximate Word count = 1228
Approximate Pages = 5 (250 words per page double spaced)
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