Submitted by: Submitted by danielang1994
Views: 10
Words: 1848
Pages: 8
Category: Societal Issues
Date Submitted: 01/25/2016 08:28 AM
According to Parker B. (1998:33) ‘’Globalisation represents a new stage of world development-a development process that is having a profound effect on business activities. In this stage of development, the world has for all intents and purposes become a single marketplace for buying and selling where goods, capital, and people increasingly are able to move more freely in response to global supplies and global demands.’’ Globalisation is a popular issue in this century. As transport, technology and communication develops, people can now travel further and contact with one anothers with a no time delay. For example, people can travel from the UK to Japan in less than 24 hours by plane instead of going on a voyage for a month. Therefore, there is a new type of company what can come of this: multi-national company. Multinational companies are usually big companies with a lot of revenues and staff all around the world. Other than that, they are mostly having a headquarters in fully developed countries and have regional departments at the other side of the world. Regional departments can make administrative order without letting the headquarters know. They usually produce product in some poor or developing country and they sell them in rich or fully developed country. Under globalisation, we can see that most popular brands are multi-national companies, like McDonald's, Samsung, and Disney. They can be in different industry. However, their products are widely used by lots of people in different countries all over the world.
As nowadays, freights can now be easily transported from one country, therefore we have some new production methods for business: outsourcing and specialisation. Outsourcing means a company can pay for other company to produce goods at a cheaper price instead of producing the goods themselves. The company who outsource are usually a multinational company with a base on a richer company, while the other is usually a smaller company with established...