Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
    1. Globalisation defined
    2. The drivers of globalisation:
    3. The impact of globalisation on business
    4. Multinationals
    5. MNCs from Emerging Nations
    6. Impact of multinational companies on the host country
    7. Regional economic groups / blocs
    8. The World Trade Organisation (WTO)
    9. The Stages of Economic Integration
    10. Regional trading bloc examples
    11. The European Union - using the web
19. 1.9 Globalisation - questions
20. Print View

MNCs from Emerging Nations

There has been more to globalisation than just a rise in world trade. There has also been a significant increase in foreign direct investment (FDI) by companies over the last

15 years, particularly those from emerging nations. The advance of globalisation is reflected in the number of companies establishing a presence in other nations. The easing of trade barriers and tariffs and the ICT revolution has underpinned globalisation.

The Fortune Global 500, the annual ranking of the world's largest corporations by revenue, shows the number of Fortune Global 500 companies based in Brazil, Russia, India or China (BRIC) more than double from 27 to 58 in the last five years. The highest placed BRIC firm in this list is Chinese oil giant Sinopec, which was 9th in the overall standings in 2009.

Emerging nations have seen a steady increase in the number of new multinational companies over the last five years with increasing numbers of emerging economy companies setting up operations in foreign countries. This offers a considerable opportunity for local companies that provide business-to-business services, such as communications and IT.

1

Globalisation What is meant by the term 'globalisation'? a) The growing integration of the world's economy b) The increase in foreign trade c) The increase in exports from less developed economies d) The increase in trade protectionism Yes, that's correct. Well done. Globalisation is the growing integration of the world's economy.No, that's not right. The correct answer is A. B has arisen as part of the increase in globalisation and in a smaller way so has C. D is one of the factors which has been decreased and has led to part of the increase in global trade.Your answer has been saved.

2

Multinational Corporations How might an MNC influence technology and expertise in the countries in which it works? a) By influencing government decisions in those countries b) By introducing new processes and management styles c) By producing products that might be harmful to local residents d) By improving export potential Yes, that's correct. Well done. MNC's will often result in this process known as technology transfer.No, that's not right. The correct answer is B. A is sometimes thought to be a disadvantage of MNC's as they become involved in local politics. C is also thought to be a problem by some MNC watchers as they fear less social responsibility that that practices at home. D will hopefully take place but it is not normally though to be route by which technology transfer takes place.Your answer has been saved.