Reference no: EM133248120
Respond/reply to this discussion and use 1 reference from a peer reviewed journal article. Whether you agree or disagree explain why with supporting evidence and concepts. Include a reference, link, or citation when appropriate. Provide evidence of critical, college-level thinking and thoughtfulness in your responses or interactions. Avoid summarizing.
1. A multinational firm is a company that controls and owns the production of goods or services in at least one country other than its own, while also doing more than just importing and exporting goods. Multinational firms move goods, skills and resources across nations. Traditionally it would have been very large companies would have competed worldwide but as technology increases and time changes more and more small and medium sized companies have started pursuing international markets. Today 304,000 small and medium sized firms export goods from the U.S. (Lamb, C. W., Hair, J. F., McDaniel, C.). Benefits to globalization include, a competitive drive to down prices and increase product and service quality, cooperation's look for countries that offer lower labor cost and are higher in technology to get the product done faster, businesses are looking for the most efficient companies to get the job done faster. Globalization expands the economic freedom. For less developed countries globalization offers access to foreign capital, global export markets and advance technology. Many of the us based multinationals earn a large percentage of their revenue abroad. Examples of large multinationals include Walmart, ExxonMobil, apple, GM, and ford. MNEs are promoting growth and employment by creating new jobs, realize investments, bringing new technologies and allowing host economies to integrate and upgrade global value chains. (Cepr.org) MNEs and foreign affiliates account of 1/3rd of the output and GDP. MNEs are important because they help countries out, by bringing goods or services that one country cannot produce by their selves.
Respond/reply to this discussion and use 1 reference from a peer reviewed journal article. Whether you agree or disagree explain why with supporting evidence and concepts. Include a reference, link, or citation when appropriate. Provide evidence of critical, college-level thinking and thoughtfulness in your responses or interactions. Avoid summarizing.
2. Multinational firms have a big impact on the world economy. A multinational firm is a company that has its services in two or more countries in the world. That is what makes a business considered multinational. These companies are all centered around the business's main base of operations in the country where the industry was created. Multinational firms are very impactful to the world economy because they affect global factors like employment. However, multinational firms tend to find secrets because they can get out of not paying taxes and using labor to make use of the goods a firm is producing. At the end of the day, multinational firms are very beneficial to our global economy because they encourage more and newer businesses to become multinational, and that way they can get the global economy the goods and services they need that they might not be able to get depending on what businesses and firms are around them. Perhaps the most important thing that comes from multinational firms is that they increase the ability to hire more people and that can create innovation which is very important is running a successful firm. Hiring newer and more employees opens up the firm for a chance to try new ideas and use newer technologies and this means that the firm can grow bigger and makes the company successful. That is why multinational firms are so important in our global economy because they can expand their goods and services to other parts of the world and also attract newer employees to join the labor force which will help grow the company in a good direction.