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Globalisation Impact on Multinational Enterprises

To initiate and actualize the entry, organisations become Multinational firms. Thus, firms which want to successfully tap the opportunities, brought on by various factors including globalisation, in foreign countries become Multinational companies. To tap those opportunities, firms have to initiate country-specific strategies from the recruitment stage to the recruitment stage, thereby fully evolving and actualizing into MNCs. MNCs are organisations that have a substantial direct investment in foreign countries and actively manage those operations and regard those operations as integral parts of the company both strategically and organizationally. (Barlett, Ghoshal amp. Beamish 2008, p. 2) MNCs have to set targets and formulate various strategies according to the situation prevailing in those foreign markets. As every foreign market or country will have different political, social, economic conditions as well as different customers, competitors, prospective employees, etc, etc, there will be many opportunities as well as challenges, which will block the firms’ success. Thus, these factors could influence the practices of MNC’s, thus enabling the firm to become a complete MNC. Nations and its firms have been engaged in doing business with other nations and firms in order to get profits and cultivate their economies. Although this form of trade is going for centuries, certain countries in a certain period of time have imposed restrictions on this international trade. That is, these nations due to one reason or other actualized a protectionist regime, thereby blocking foreign companies to enter and do business in their territory. However, with the advent of globalization and the liberalization of the WTO regimes, this protectionist regime gave away to the regime of free trade, thus leading to the formation and proliferation of MNCs.