Contents
Executive summary................................................................. .......................................3
Introduction............................................................ ........................................................4
Multinational corporations in the global business environment………………….6
Ethics and social responsibility in the global business environment.......................8
IT industry in India: the past, the present and the future........................................10
Conclusion.............................................................. ......................................................12
References.............................................................. ......................................................13
Executive summary
Nowadays one can observe very interesting and unusual processes within the global economy: new, competitive national economies grow up, which have been considered as still developing ones. At the same time, there arise huge multinational corporations that penetrate into economies of different countries and greatly influence the world economy. Globalization has greatly changed the rules of a business game. The strategies, developed for domestic companies, are not appropriate for corporations, which operate in the global market and doing business in foreign lands.
Managing a business in a foreign country is a hard work, because it requires constant monitoring of political, economic, social and technological environments of a foreign country. Moreover, there exist cultural peculiarities of a host country that is why the highest priority for managers should be learning the proper cultural practices and the foreign cultural taboos. One can fail only because he/she does not know specific cultural and managerial practices in a foreign land.
Along with globalization and emergence of multinational corporations there appears the notion of free trade. Free trade plays a crucial role in modern life of the world. The first economist, who gave the definition of free trade and explained its importance, was Adam Smith. As every phenomenon, free trade has its pros and cons. The analysis of free trade advantages and disadvantages should be used by every nation, because free trade lifts all the barriers between countries and regions, and, as a result, fierce competition between foreign and national traders takes place.
In order to make sound decisions about a company’s modernization and expansion to foreign markets, managers should definitely study the business environment in host countries; analyze major tendencies of development; forecast possible profits or losses and only after having considered all the aspects, managers should make up strategic plans and move further.
Introduction
Along with the development of international relations and emergence of the globalization processes, in the second half of the 20th century multinational business has become an essential force in the market. In fact, nowadays, one can hardly find self-sufficient economies all over the world. Even such countries as China and some others, which have vast natural and human resources, cannot maintain aloofness. In our modern world, all of us are bound and our countries are interdependent, while there appear more and more international organizations and multinational corporations. Frankly speaking, some experts believe that the process of globalization is inevitable and irresistible; as a result, the boundaries between countries are fading and unique peculiarities of every nation are disappearing as well.
Today we should use the notion of global economy, because of the following factors: expansion of technology, especially transportation and communications; abolition of international business restrictions; high demand on foreign goods and services; more global competition; …