This leads to major liberalization in 19th century which was termed as globalization. The rising extent of globalization can be identified with a number of trends started after World War II. It includes global movement of commodities, money, information, innovation and also people. Global development of technology, legal systems, organizations and infrastructure are the key drivers for this movement. Developed, developing and also underdeveloped nations have been enjoying many benefits through internationalization of leading businesses of many countries. International trade has been increased through multinational organizations at a faster rate overall growth in world economy. Global flow of capital has increased through foreign direct investment especially of the leading firms of developed and developing countries. International organization has developed like WTO, IMF, WIPO, World Bank etc for monitoring international transaction of goods and services. Outsourcing of different services has increased dramatically in first decade of 2000 century and it has benefited the MNCs by reducing cost of business operation (Kox, 2001, p.90). Businesses’ engagement in CSR Increasing extent of globalization is nearly proportionate to internationalization of leading firms of many countries. Development in infrastructure, income level of people mainly disposable income and technology advancement is the key motivational factors for internationalisation of firms. There are many entry strategies that the leading firms have identified. Corporate social responsibilities of firms in domestic countries enhance the reputation and goodwill in...
This essay stresses that it has been observed that the China has been grown rapidly in last two decade. This is due to Foreign Direct Investment inflow to China has increased in major extent. It has become one of the leading business hubs in the continent of Asia to the leading MNCs in the world especially the MNCs of developed markets. At the same time, outward foreign direct investment is also substantial contributor in economic development of this nation. Generally, economic growth of a country is quantitatively measured by gross domestic production of the country. China holds huge resources for businesses including natural resources like agriculture base products, infrastructure, technology and obviously availability of manpower for all level of work.
This paper makes a conclusion that the liberalization of some of the developing countries has not translated into qualitative gains. The gains from trade in less developed countries are still not sufficient. The costs of globalization driven by trade may be unsustainable and therefore the inequalities will tend to rise further which is indeed a matter of concern. As a result the countries are becoming prone to external shocks. In order to benefit from globalization a sustainable environment is needed to be created in the context of differentiated trade policy and development landscape. The international trading system has witnessed several changes under the globally recognized challenges. The trading system has recognized the structural as well as the economic challenges that are faced by the developing countries.