What is globalisation describe the role of mncs in promoting globalisation process
Answers
After centuries of technological progress and advances in international cooperation, the world is more connected than ever. Globalization is growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
Role Of MNC in Globalization
1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading the process of globalization.
2. MNCs usually set up production units across the globe in places where the market is nearby, there is the availability of skilled and unskilled labour at low costs and other factors essential to the growth of production.
3. The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCs might also set up production with the local companies of a country as a joint responsibility, thus bringing in the latest technology and foreign investment.
4. The MNCs also link and control the production of goods. Large MNCs in developed countries often place orders for production with small producers all around the world which are then sold by the MNCs under their brand name.
5. The power of control and influence of such corporations has contributed to the interlinking of such widely dispersed locations across the globe. This process, in turn, has contributed to the growth of globalization process.
Explanation:
Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.