INTERNATIONAL BUSINESS AND GLOBAL ECONOMY

International Business and Global Economy

International Business and Global Economy

Introduction

The rise of the multinational enterprise, and the consequent globalisation of the world economy, was arguably the single most important phenomenon of the second half of the twentieth century. This magisterial book, written by two leading authorities, examines this phenomenon in depth. It explains how foreign investment by multinationals diffused advanced technologies and novel management methods, driving productivity growth in Europe, Asia and North America; however, economic inequalities were reinforced as rich countries attracted more foreign investment than poor ones. This new edition of a classic work is not only an authoritative guide to contemporary multinational business, but a major historical resource for the future.

Background of the Study

This paper will attempt to explore the role, growth, and success of International Business as well as Multinational Enterprises (MNEs) in the global economy today. It is important to note that the research will largely focus on the international aspect of the U.S. market and will base the majority of its analysis on MNEs that are U.S. based (Rugman et al., 2007). The paper will also look at the various reasons that have driven large corporations to look beyond their domestic markets for new opportunities on a global scale as well as some of the challenges and requirements companies must meet in order to survive the stiff competition that exists in foreign markets. Additionally, the research paper will discuss some of the issues and controversial debates that surround MNEs including the increasing disparity between the wealth of nations and individuals in society as well as some of the pros and cons that are associated with international business and global trade.

Furthermore, the paper will discuss the role that free trade and the removal of barriers have played in the expansion of international business as well as the various trading patterns between countries in regards to capital movements, exports, import goods, as well as foreign direct investment (Keohane and Nye, 2001). Moreover, the research will include some examples of MNEs by analyzing some specific companies such as a discussion about some of the macro changes that the battery company Energizer has had to undergo over the past fifteen years and the importance of remaining flexible in today's global marketplace. Additionally, the paper will analyze the impact of MNEs domestically as well as their various implications in their host countries in regards to culture, language including an outlook of the English language in the global market, politics, and foreign regulations or laws. Furthermore, the ability of banks to provide adequate and efficient financial services to businesses to conduct international operations will also be analyzed. It is important to understand the role of the US banking system in providing international financing services as a nation's economic strength is closely linked to its success in the global market (Klein 2005).

Research Question

A.What is the Role of International Business and MNEs in the Global Economy?

Historical Background of U.S. International Business, and Brief Overview of NAFTA

The North American Free Trade Agreement was an inevitable step in the ...