Globalization in the World Economy and the the Role of MNCs in Globalization

deepakp118 By deepakp118, 4th Apr 2012 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Writing>Essays

in this page you can read all about Globalization the process which is now common . the newly emerged MNCs in the globalization process has transformed our world in a variety of ways.


Globalization is the rapid integration of the global economy through which countries interlink in variety of ways. The globalisation has enabled improvement in trade and communication to different countries. The silk route is an example of globalization since it interlinked many countries in Asia and Africa. The improvement in globalisation has taken place over the last few centuries. More and more goods and services as well as investments and technology are moving between countries. This has happened with the increase in the technology and communication. Over the last few decades there is a tremondous increase in the globalisation with the incrase in the number of mnc’s.
MNC”S are Multi national corporations or Multi national companies who has set up production in more than one countries. MNCs set up production world wide they set up in those places where cheap labour is available, where markets are close ,and MNCs might look for governmental policies that look after their interests.
What are the ways that MNCs set up production in one country?
1. At times MNCs may set up production jointly with some of the local companies . the benefit to the local companies are two fold . first MNCs may bring with them the latest technology for production and MNCs can also provide money for additional investments.
2. The most common way or route through which MNCs control production is to buy up the local companies. MNCs with a huge wealth can easily do so.
3. The other way of controling production is by placing or distributing orders for production with small producers around the globe.
The impact of globalisation is different for different people. Globalisation and rising competition among producers has been advantage to both consumers in the country and around the globe. Globalisation has enabled some of the indian countries to emerge as MNCs. Globalisation has also created and generated new job oppourtunities.
We can only make the impact of globalisation with the help of free and fair globalisation.

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