Reference no: EM13844741
Organizations to Shape Global Economy The idea of globalization can be described as organizing business operation beyond the national boundaries.
The international business organizations play critical roles to shape the global economy as they operate in the global market and serve the global customers. In this process, integration of political, social, technological and cultural framework helps the global economy in both positive and negative manner (Samimi & Jenatabadi, 2014).
The global business firms contribute to the global economy by sharing the resources and taking part in the trade liberalization. Through outsourcing and internalization, the firm facilitates the people of the globe to enjoy resources that are not available in their local area (Querishi & Jalbani, December 2014).
All the international firms contribute in a positive manner in the education, manufacturing, servicing and health sectors. Further, in the international business, the firms also provide employment opportunities to people on the globe. It is important or the international firms to create a harmony with the local policies and business environment to contribute positively to the economic development. The international firm gains the profits from the local market,
which hurts the local economy, whereas providing employment and other resources to the local people enhances their social and professional standards, which is a positive contribution. It is essential to maintain a balance in the growth and development of the countries (Ocampo, 2010).
The relationship of the international business firm with the local government should be strong and the firm should focus on social welfare and development of country people. At the same time, the relationship of the international firm with the global business should be based on diversity and cultural development....