ADM 3318 Chapter Notes - Chapter 1: Multinational Corporation, World Economy, Planned Economy

• School: University of Ottawa
• Department: Administration
• Course: ADM 3318
• Professor: Radhakrishnan Swaminathan

Document Summary

Globalization has increased the opportunities for a firm to expand its revenues by selling around the world and reduce its costs by producing in nations where key inputs are cheap. Regulatory and administrative barriers to doing business in foreign nations have come down, while those nations have often transformed their economies, privatizing state- owned enterprises, deregulating markets, increasing competition, and welcoming investment by foreign businesses. This has allowed businesses both large and small, from both advanced nations and developing nations, to expand internationally. As globalization unfolds, it is transforming industries and creating anxiety among those who believed their jobs were protected from foreign countries. Advances in technology, lower transportation costs, and the rise of skilled workers in developing countries imply that many services no longer need to be performed where they are delivered. Globalization: the shift toward a more integrated and interdependent world economy. Trend away from distinct national economic units and toward one huge global market.