Globalization is the hottest topic over the world in recent year. It brings a great impact on social, political, cultural and economic aspects to different countries. In the following, we will focus on the economic aspect and using IKEA as an example to define how does globalization of market and production benefit to a mutli-national corporation, MNC and its difficulties in entering the global market.
The ways globalization of market benefit to IKEA
According to the data collected from IKEA, there are 285 stores in 36 countries in 2008. Due to the falling of barriers, IKEA can easily enter into different market, enjoying a bigger market and market share. Most MNC are well organized with abundant capital and highly technology. It is good news to the regional zone as it will bring in capital and skills that benefit to there economic growth. In order to achieve better economic performance, most countries would fall its trade barriers to attract MNC move in. Besides, it is also appreciated by the mutli-national corporation as they can set up their business easily over the world with lower taxation and transportation cost. The opening of new stores will increase company turnover, their profit and revenue will rise accordingly. After the grand opening of IKEA store among different counties (as shown in Figure 1.1), IKEA sales increase rapidly, from 25 millions in 1964 to 22,498 millions in 2008, its revenue also rise consistently.
|Year |IKEA store first open in country | |1950-1959 |Almhult (showroom and first store) | |1960-1969 |Norway, Stockholm, Denmark | |1970-1979 |Zurich, Munich, Australia, Hong Kong | |1980-1989...
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