Mne Globalization

Nguyen Phan Quang

Finance 56C

11143634

Question 1

Despite all the advantages of globalization, MNE activities, they both create many problems as well. There are some problems would be listed

• Unemployment and job loss in local country
• Environment damaged such as global warming, air pollution, water pollution..
• The differences between rich and poor people are much larger
• More rivals from other country leads to unfair competition
• Imbalance the capital flow in local and foreign country
• Lost of country and local culture due to importing good service and foreign culture, especially in developing country
• Making local government hard to control importing factor

Question 2

Despite all the problems mentioned above, we cannot deny the globalization’s advantages and influences. Some arguments are listed below

• Generating a less cost, more profit and much quantity sales in company’s operation
• Employees receive more salaries and benefits
• Improve people’s living standard and company’s ability of compete in many kinds of market
• Improve people’s willing to create and adapt to new technology
• Better economy leads to more high-educated people and their carefulness to the environment. Therefore, environments may be preserved by people and regulation
• Motorola invests in China as well as build a good education system for their people
• Bill Gates, Warren Buffet and other billionaires offers their profit from globalization and contribute to health care system, people living in poor country..

Technology plays the main role in globalization. It enhances the quality of communication, informations, international investment and capital flow

• Technology creates many ways to compete and outperform competitors, differentiae products and target a lot of market segments
• Technology improves the quality and productivity through high tech device and manufacture, robots and better materials
• Technology influences the daily working of each people through social media (Facebook, Twitter) and internet service such as Google, LinkedIn
• Technology provides more precise decision of company and individual by its unlimited ability

Question 3

Governments also play an important role in globalization