The Role Transnational And Multinational Companies Have Played On Essay

The Role international And Multinational Companies Have Played On Globalization - Essay ExampleThe world has seen a wicked increase in the global transactions and foreign trade in the recent years. The main former behind this is that now more and more countries are getting engaged in trading with individually other in order to increase their profit or sales or protecting them from universe eroded by competition. The main objectives which are influencing the companies to engage in international business are the elaboration of sales, acquiring resources, minimizing competitive risk and diversification of sources of sales and supplies (Johnson & Turner, 2003). Besides these, there are other some factors like economic factors, cultural factors, technological factors, and social factors which have the influence to a greater extent. The matter and activities of transnational and multinational enterprises had impacted to a huge extent on the concept of globalization. Multinationals h ave play an important role in globalization. Given their international reach and mobility, prospective countries, and sometimes regions within countries mustiness compete with each other to have MNCs locate their facilities (and subsequent tax revenue, employment, and economic activity) within. To compete, countries and regional policy-making districts offer incentives to MNCs such as tax breaks, pledges of governmental assistance or improved infrastructure, or slack environmental and labor standards. This process of becoming more attractive to foreign investment can be characterized as a race to the bottom.