Topic > A Look at Globalization - 2162

Globalization: Globalization can be seen as the reduction of barriers between countries. Globalization has opened the world market to international trade. The globalization movement has contributed to the spread of knowledge, culture, technology and information across borders. The growing role of international expansion across borders has also increased the attention of multinationals towards international business strategies. Today, organizations in developed or developing countries are going international due to increased competition. They want to expand their limits beyond the local region. Competition in the domestic market and pressure to expand business are the few reasons for globalization. Below are the few benefits of globalization. a) No trade borders: Before globalization it was very difficult to trade your product with other countries. Post-globalization has reduced barriers in international trade. An organization can trade its product anywhere in the world. In modern multinationals, sales, marketing and production are based in different countries to take advantage of location advantages. b) Dynamic Work Environment: Globalization has brought a revolution in the world economy. Globalization has increased the rate of mergers and acquisitions. Increased competition among multinational corporations across the world has increased dramatically. The working environment has changed a lot after globalization, c) Information Technology: The improvement in information technology is due to the impact of globalization. What has the best potential to change the shape of international management is the advancement of technology. An organization may operate from one end of the world to the other in the middle of paper before entering its market. Environmental analysis of the region or country is necessary for any multinational company. Multinationals from developed countries and multinationals from developing countries often tend to adapt the same strategies to enter new markets such as mergers, acquisitions, alliances etc. There is not a huge difference between multinationals from developed countries and developing countries. Multinational companies mostly choose the strategy where the risk level is much lower and they can gain competitive advantage. It is seen that most of the multinational companies are trying to take advantage of the growing economy of BRIC countries. To conclude, unique strategies like international pricing, distribution, global marketing are the few best strategies adopted by emerging market MNCs because they are less risky, involve less capital investment and give high success rate..