Business Presentation:

Is Globalisation good for everyone?

Globalization

&

Multinational Company

Globalization

Name for the process of increasing the connectivity and interdependence of the world's markets and businesses.

Points of Globalization:-

- Free trade agreements and economic unions have reduced protection for Industries.

- Improved travel links and communications between all parts of world have easier to compare prices and qualities of goods from many countries.

- Many countries which used to have very undeveloped manufacturing industries have been building up these business very rapidly.

Multinational Company/business

Multinational businesses are those with factories, production or serviceoperations in more than one country.

These are sometimes known as TRASNATIONAL businesses.

Multinational Company/business

Multinational business are some of the largest organisations in the world.They include:

- Oil companies: Shell, BP, Exxon

- Tobacco companies: L&M, KrongThip, Dunhill

- Car manufacturers: Nissan, BMW

Why do firms become multinational?

•To produce goods in countries with low costs, such as low wages.

• To extract raw materials which the firm may need for production of refining.

• To produce goods nearer the market to reduce transport costs.

• To avoid barriers to trade put up by countries to reduce the imports of goods.

•To expand into different market areas to spread risks.

Advantages of multinational operating in a country:

• Jobs will be created which will reduce the level of unemployment.

•New investment in buildings and machinery will increase output of goods and services in the country.

• Some of the extra output may be sold aboard which will increase the exports of the country. Also, imports could be reduced as more goods are now made in the country.

•Taxes will be paid by the multinational which will increase the funds to the government.

Disadvantages of multinationals operating in country:

•The jobs created are often unskilled assembly line tasks.

•They may force local firms out business.

•Profits are often sent back to the multinational business’ ‘home’ country and not kept in the country where they are earned.

•They often use up scarce and non-renewable primary resources in the

host country.

• As the business are very large they could have a lot of influence on both the government and the economy of the country. They might ask the government for large grants to keep them operating in the country.

Multinational Company/business

Advantages to the firm

New marketObtain rawmaterials

Avoid trade barriers Low labor costs Spreads risks

Advantages to the country

Disadvantages to thecountry

Newinvestment

More exports

Fewer imports

Jobscreated

Morecompetition

Taxes paid toThe government

Use ofScareresources

Existing firmsin danger

Profits flowOut of country

Often onlyUnskilledJobscreated

Influence thegovernmentand economy

Factors multinational businesses have to take in account :

When manufacturing:

- Resources

- Infrastructure

When selling- Tastes of the people- Law in different countries- Country’s status and development

THE SUFFERINGS PEOPLE HAD TO GO THROUGH FOR MULTINATIONAL COMPANIES:-

Who suffered?Who suffered?- people, areas and other businessespeople, areas and other businesses

One example is relocation, it is the most One example is relocation, it is the most urgent for the community to survive. urgent for the community to survive. People can continue to struggle for a fair People can continue to struggle for a fair and transparent settlement.and transparent settlement.

E.g.: N.C. Zoo's Beaver Relocation Effort E.g.: N.C. Zoo's Beaver Relocation Effort Suffers Setback Suffers Setback

THE SUFFERINGS PEOPLE HAD TO GO THROUGH FOR MULTINATIONAL COMPANIES:-

For companies to open up : space is needed.

To gain this space, sometimes hundreds of people have to relocate, old historic buildings are broken down, and nature is destroyed.

Done by:-

JoeCarolineMintraJomKavinNatasha

Thank You for watching! We hope you learn more

about Globalisation!