In Multinational Enterprise and Economic Analysis, R.E. Caves analyzes the world of international relationships and how these relationships and business shape each other. Modern businesses stand in the middle between following government policies and developing those policies. The same can be said for public perception. The effective business reacts to and shapes public perception. This becomes more important when looking at multinational businesses.
Perceptions, policies, and regulations around the world all intertwine effecting businesses. Those who have a presence in more than one environment can draw on that experience to take maximum advantage of their power.
Multinational enterprises are joining together to transform the latter part of the twentieth century into a trade and business network such as has never existed at any other time in history. Factors such as the Asia-Pacific Economic Cooperation forum (APEC) and the North American Free Trade Agreement (NAFTA) have joined the world together in way that it has never been joined before. Caves points out that these factors and the transformations occurring are the result of a strategic effort by multinational enterprises to shape governmental policy
Judgment is now passed on a business's ability to influence society itself. A business' influence in the world marketplace is directly associated with its ability to accept and incorporate new technologies and to take hold of the reins to act effectively and efficiently in shaping international relations.
Information access is more critical than ever before to the global economy and to international relationships. Many companies have tremendous amounts of money on the line in the global marketplace which depend directly on ready access to accurate information. This necessitates bringing information technology and business into closer association with one another.
Business has shaped even international agreements as weighty as the North American Free Trade Agreement. This agreement was orchestrated largely though the strategic actions of multinational enterprises. Multinational businesses have tremendous power in impacting such aspects of our lives as governmental regulation and policy. Part of their effectiveness lies in their ability to communicate and to sway opinion. In today's economic environment communication is critical in allowing a business to deal with the restructuring of national and internati
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