1.Summary
First of all we need to know what is economic globalization？Economic globalization refers to the process of global economic activities that transcend national borders and form a global organic economy through foreign trade, capital flows, technology transfer, service provision, interdependence and interconnection. It is the trans-regional flow of production factors such as commodities, technology, information, services, currency, personnel, capital, and management experience (in short, the world economy is increasingly becoming a close-knit whole). Economic globalization is one of the important characteristics of the contemporary world economy and an important trend in the development of the world economy.Economic globalization's forming factors: The underlying factor is the result of the development of productivity. The development of high technology, especially the development of information technology, has laid a material and technological foundation for economic globalization. The development of a market economy by more and more countries is the institutional guarantee for economic globalization. International trade and investment liberalization are the direct drivers of economic globalization. The internationalization of business operations, especially the rapid expansion of multinational companies on a global scale, has played a catalytic role.
2.Interesting point
Multinational corporations mainly refer to monopoly enterprises in developed capitalist countries, which are based in the country and through foreign direct investment, set up branches or subsidiaries around the world, and engage in monopoly enterprises engaged in international production and business activities. The main features of multinational corporations: 1. Generally, there is a large-scale company with strong national strength as the main body. Through foreign direct investment or acquisition of local enterprises, subsidiaries or branches are established in many countries; Decision-making system and the highest decision-making center, each subsidiary or branch has its own decision-making body, and can make decision-making activities according to their own fields and different characteristics, but their decisions must be subject to the highest decision-making center; Generally, we arrange our own business activities from the global strategy, seek market and reasonable production layout in the world, set professional production, and sell products at designated prices to maximize profits. 4. Generally, we have strong economic and technical strength. , with rapid information transmission, and the advantages of rapid cross-border transfer of funds, so it has strong competitiveness in the world; 5, many large multinational companies, due to economic, technical strength or in the production of certain products Advantages, or different degrees of monopoly for certain products, or in certain regions.The influence of multinational corporations is expanding, and it has actually served as the main driving force and pioneer of economic globalization. Since the early 1990s, many multinational companies have increased their cross-border indices of overseas assets, income and employees over the past 10 years from transnational economics to global operations. From 1994 to 2004, the overseas assets of the world's 100 largest multinational companies increased from 41.1% to 53.4%. From 1995 to 2004, the cross-country index of the world's top 100 multinational companies increased from 48.9% to 56.8%. More and more multinational companies have adjusted their past multinational development strategies into global development strategies. Global operations have become the norm in business operations.The degree of globalization of cross-network companies reaches a certain level. For example, overseas assets, overseas income and overseas employees exceed 50% of total assets, total income and total employees. In fact, these companies can be regarded as global companies. Global companies adopt global strategies, The management structure and the adjustment of the concept culture have successfully absorbed the global resources, thus greatly improving the global competitiveness and profitability.
3.Discussion
Why are there multinational companies? I think that the reason for the existence of multinational corporations is because the difference between production materials and social labor productivity leads to different location factors in each place. The horizontal comparison of these location factors will lead to the advantages and disadvantages of different regions, because the company's commercial profitability , will continue to expel the benefits to the maximum, so the source of raw materials from the cheapest places, sold to the best price is the root cause of the existence of multinational companies. The basic reason is that the demand for special features, cheap services and products in different regions is not met in the region, so the other regions can meet the material and spiritual needs of the region, and the market has opened up. What else do you want to add?
First of all we need to know what is economic globalization？Economic globalization refers to the process of global economic activities that transcend national borders and form a global organic economy through foreign trade, capital flows, technology transfer, service provision, interdependence and interconnection. It is the trans-regional flow of production factors such as commodities, technology, information, services, currency, personnel, capital, and management experience (in short, the world economy is increasingly becoming a close-knit whole). Economic globalization is one of the important characteristics of the contemporary world economy and an important trend in the development of the world economy.Economic globalization's forming factors: The underlying factor is the result of the development of productivity. The development of high technology, especially the development of information technology, has laid a material and technological foundation for economic globalization. The development of a market economy by more and more countries is the institutional guarantee for economic globalization. International trade and investment liberalization are the direct drivers of economic globalization. The internationalization of business operations, especially the rapid expansion of multinational companies on a global scale, has played a catalytic role.
2.Interesting point
Multinational corporations mainly refer to monopoly enterprises in developed capitalist countries, which are based in the country and through foreign direct investment, set up branches or subsidiaries around the world, and engage in monopoly enterprises engaged in international production and business activities. The main features of multinational corporations: 1. Generally, there is a large-scale company with strong national strength as the main body. Through foreign direct investment or acquisition of local enterprises, subsidiaries or branches are established in many countries; Decision-making system and the highest decision-making center, each subsidiary or branch has its own decision-making body, and can make decision-making activities according to their own fields and different characteristics, but their decisions must be subject to the highest decision-making center; Generally, we arrange our own business activities from the global strategy, seek market and reasonable production layout in the world, set professional production, and sell products at designated prices to maximize profits. 4. Generally, we have strong economic and technical strength. , with rapid information transmission, and the advantages of rapid cross-border transfer of funds, so it has strong competitiveness in the world; 5, many large multinational companies, due to economic, technical strength or in the production of certain products Advantages, or different degrees of monopoly for certain products, or in certain regions.The influence of multinational corporations is expanding, and it has actually served as the main driving force and pioneer of economic globalization. Since the early 1990s, many multinational companies have increased their cross-border indices of overseas assets, income and employees over the past 10 years from transnational economics to global operations. From 1994 to 2004, the overseas assets of the world's 100 largest multinational companies increased from 41.1% to 53.4%. From 1995 to 2004, the cross-country index of the world's top 100 multinational companies increased from 48.9% to 56.8%. More and more multinational companies have adjusted their past multinational development strategies into global development strategies. Global operations have become the norm in business operations.The degree of globalization of cross-network companies reaches a certain level. For example, overseas assets, overseas income and overseas employees exceed 50% of total assets, total income and total employees. In fact, these companies can be regarded as global companies. Global companies adopt global strategies, The management structure and the adjustment of the concept culture have successfully absorbed the global resources, thus greatly improving the global competitiveness and profitability.
3.Discussion
Why are there multinational companies? I think that the reason for the existence of multinational corporations is because the difference between production materials and social labor productivity leads to different location factors in each place. The horizontal comparison of these location factors will lead to the advantages and disadvantages of different regions, because the company's commercial profitability , will continue to expel the benefits to the maximum, so the source of raw materials from the cheapest places, sold to the best price is the root cause of the existence of multinational companies. The basic reason is that the demand for special features, cheap services and products in different regions is not met in the region, so the other regions can meet the material and spiritual needs of the region, and the market has opened up. What else do you want to add?
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