The King of Saudi Arabia has made billions of dollars just by taking over companies that have been underperforming. He is a major shareholder in Citibank. His sole incentive when it comes to investing is money. Money driven people would completely stop functioning if money is taken out of the equation. Earlier there was barter system which was really complicated but it enabled the society to function. People could swap important things with each other but these days the system has become really sophisticated. Each item has a price tag and if you have the money, you can buy it. Times have changed and so has the system. International finance and trade would completely be halted if money is removed from the equation. This will adversely affect each and everyone. There would be no jobs, this will in turn affect those who work for MNEs. Crime rate will increase when there are no jobs and the society will be impacted negatively, thus money is extremely critical when it comes to the functioning of the society as well as the economy.
MNEs otherwise known as multinational enterprises and they are companies that have extended their markets or productions past their national boundaries to international boundaries. Most MNEs usually diversify in developing countries because there is a lot of untapped resources that have not been utilised for example human resource and other resources of production. MNEs have to develop several strategies if they have to be competitive in the global market. According to Dunning (2008), globalisation is a myth. Most people prefer to carry out business within their regional block because of the several advantages that come with globalisation such as limited restrictions to trade or limited tariffs. MNEs however accept the risks that come with globalisation and they expand their markets to other countries. Eiteman (1992) believes that Globalisation is not easy because not many host country enterprises will want competition from other firms especially firms with better products or services. MNEs therefore have to carry out a study of the host countries and evaluate the circumstances there before setting up businesses there. The MNEs have to consider factors such as political, social, economic and environmental factors so as to determine whether the market that they want to get into is effective and productive enough. The process of entering or penetrating an international market is a difficult one and MNEs have to be very careful. Entering a new market is like starting up without any sales force or any marketing infrastructure. MNEs therefore have to constantly develop strategies to compete in the global market and they have to keep constant check and keep changing them. MNEs have to ensure that they develop strategies that minimise the risk of the investment and that brings the most returns. MNEs that are emerging in developing countries