What good and bad things do Multinational and Globalisation brings?
- Date: 26th Nov, 2019
- Article: Business
What is Multinational?
Multinational basically involves several countries or individuals of several nationalities. So, for example, a person born and raised in Britain is British, but ethnically they may be Pakistani or belong to any other ethnic group. From my personal experience, I know many people who have never visited their homeland, and yet were raised according to their parents’ culture. So, many immigrants in Britain are British citizens, but with foreign ancestry.
What is Globalisation?
We now can easily communicate and share customs and traditions across different cultures through global travel and trade. We are part of a huge global economy where something that happens in one area can have knock on effects worldwide. This process is referred to as globalisation.
The world is becoming increasingly more interconnected due to trade processes and cultural exchanges crossing national boundaries known as globalisation. It not only benefits big companies but also small businesses by raising the level of production of goods and services to global scale. Big companies are no longer national firms but multinational corporations with subsidiaries in several countries.
Globalisation has been taking place for almost a century now, but has reached staggering rates in recent years.
Globalisation has resulted in:
- Increased international trade
- A company operating in more than one country
- Greater dependence on the global economy
- Freer movement of capital, goods, and services
- Recognition of companies such as McDonalds and Starbucks in LEDCs (A less Economically developed Country)
In the interests of a country’s economy, Globalisation has proven to be an extremely beneficial strategy, especially in terms of labour availability and skills, where big companies can acquire cheap skilled labour from countries like India and China. Globalisation most probably generates more wealth in developing countries, and contributes very little towards bridging the gap between the world’s richest and poorest countries.
This is the reason why people in many countries, like Syria, Afghanistan, Iraq and many more, leave their less economically developed countries to settle in Europe and the USA. These people leave their homeland in the hope of improving their quality of life through education and health services, often at the expense of giving up on their culture and traditions. This is because all citizens have to abide by the law of the country they live in and some long-established traditions may be unacceptable or banned, like wearing burka in France.