Globalisation Is a Positive Force in the World. Discuss.

Topics: Business process outsourcing, Multinational corporation, Outsourcing Pages: 4 (1175 words) Published: March 30, 2013
Globalisation is a positive force in the world. Discuss.
In recent years, amongst all the claims and counterclaims, the argument over whether globalisation is a positive force or not has become rather controversial. Advocates claim globalisation facilitates economic growth, international financial integration, and cooperation between nations while critics vigorously argue that globalisation leads to a fierce exploitation of the labour class, a disparity between rich and poor, and a concentration of resources. Peng (2009) has indicated an innovative perception, the pendulum view, in order to emphasize both ups and downs of globalisation. As a pendulum, not only one direction swings, but also the other. The influence of globalisation raises the caution that dominant culture and multinational corporations (MNCs) control the most power which destroys not only local enterprises, but also local cultures and values. Despite the defects mentioned above, regarding the MNCs' international strategy, it is often said globalisation as a foundation is conducive to the extension of profits. In this essay, the impact of globalisation on MNCs will be examined and will mainly concentrate on the following forces: market, cost, and efficiency.

As the domestic market gradually matures, it is essential for a corporation in developed country to extend its market. The invisible pressure behind this phenomenon originates from keen competition with other companies, especially multinational enterprises possessing a large amount of capital. Gradually, the sum of profits decreases and the stockholders' grievances escalate. As a result, the board has to search for the solution to mitigate the clash. Facing this challenge, corporations attempt to sell products to consumers in emerging markets because these potential customers are many times greater than domestic consumers. Moreover, globalization transubstantiates not only the field of market but also the formation of industry....
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