Multinational business and globalization

Résumé du document

Above all, let's start by explaining what globalization is. Many definitions exist some are too minimalist, others too general. The term used to describe the current state of the global economy has become a fashionable word. We retain that: “Globalization is a process (or set of processes) which embodies a transformation in the spatial organization of social relations and transactions – assessed in terms of their extensity, intensity, velocity and impact – generating transcontinental or interregional flows and networks of activity, interaction, and the exercise of power.” David Held et al. That definition is both broad and fairly accurate.

Globalization is not a state but a process. Process that is manifested by increased interdependence between the various continents and therefore all countries of the world. Effectively, never the world produced so much wealth. Never technologies were developed as well as today. Never exchanges between the countries were as well as now. Globalization, striking phenomenon of the last thirty years, brought by progress in transports and telecommunications, has intensified the economic, financial, cultural relations between human societies. Firstly, we see the main characteristics and forces of globalization, both economic and non-economic. Then we will discuss about the challenges and opportunities that globalization brings to multinational businesses.