The Behaviour of MNEs and of Global Supply Chains Essay

The Behaviour of MNEs and of Global Supply Chains - Essay Example 15). It is the purpose of this brief discussion to explore some of the more salient views of economists on the behaviour of MNEs and global supply chains and how they affect the global economy. Effect of MNEs in emerging economies Theoretically, the MNEs fulfil a vital role in linking economies with each other, through the transfer of financial capital, knowledge and capabilities, ideas and value systems (Meyer, 2004). Controversy attends, however, the effects of MNE activities on the development of the local economy and the social welfare of the host country residents. It is acknowledged that MNEs may transfer advanced technologies and best practices to emerging economies where it has subsidiary operations, while local firms may benefit from positive knowledge spillovers from the operations of MNEs. Knowledge spillovers are different from knowledge transfers because the latter are intentional and are targeted at the local subsidiary, while spillovers are not deliberate, and the bene ficiaries are the local firms other than the subsidiary. This positive development is tempered, though, but the possibility that the MNE may crowd out local firms, and cause a reduction in competitiveness in the market. Furthermore, MNEs may impose their strong bargaining position in relation to host country governments, in order to obtain concessions which minimize the social and economic benefits which should have accrued to host nations (Stiglitz, 2007; Bansal & Hoffman, 2012). Global standardisation versus national differentiation/ fragmentation in the supply chain At the centre of the debate concerning MNE’s impact on host countries and their environments is the pressure towards global standardisation as against the local tendency towards national fragmentation (Bansal & Hoffman, 2012). According to the integration-responsiveness framework developed by Bartlett and Goshal (1998, 2002), MNEs are compelled to integrate their operations globally because of customers across different countries have common needs, and it is by centralized decision-making and standardized products and practices that the MNE could more efficiently and economically meet the demands of its global market. Among external determinants of MNE global standardization are home and host country pressures as well as those influences that cross borders. Complications relating to the varying availability of materials, technology, skilled workers, and other resources across countries impacts upon the decision of MNEs whether and how far to standardize and integrate. Early in the development of the global economy, significant heterogeneity of host country regulations forced MNEs to adopt different policies to adopt to each country and culture. More recently, however, national governments have concentrated on attracting foreign direct investments (FDIs), raising concerns that developing countries would lower their barriers to trade and FDI, and to keep environmental regulations low to att ract MNEs to set up production and infuse investment in the country (Bansal & Hoffman

Car Culture in Log Angeles Research Paper Example | Topics and Well Written Essays - 1750 words

Car Culture in Log Angeles - Research Paper Example It has the longest sea port and its economy is mainly fueled by international trade and entertainment. Apart from that, it is very developed in many other fields, such as aerospace, medicine, finance, telecommunications etc. Plus, Los Angeles is one of the largest cities in the United States. It is sprawled over a vast area and the topography is quite mountainous. These factors are reason enough to understand why car culture is quite dominant here. With people facing little economic or financial issues, the majority of the population can afford to own a car, hence, public transport is very limited. It is a great challenge for a foreigner to adjust in the city of Los Angeles. A foreigner is very likely to get overwhelmed by its vast sprawl, fascinations, lights and attractions. Therefore, foreigners must be dealt with great sensitivity. American residents are so adjusted in their lives that they pay little attention to foreigners who grapple to adjust in the huge and vivacious city. T he Pedestrian is a short story by Ray Badbury in which he describes how people change after they start living in the city of LosAngeles. It is a futuristic depiction about a man named Mr. Mead who was a new immigrant in the city of Los Angeles and was not much prone to the city culture. He loved exploring things at night. He did not like to disturb any one and would quietly set out in the streets for walking and enjoying the cold breeze. However, this piece represents good sarcasm on how the world has changed today. People who enjoy the beauty of nature are rarely appreciated, rather they are considered to be maniacs or psychotics, just like Mr. Mead was considered to be mentally ill. The story also proposes good sarcasm on the ever decreasing value of books, magazines and journals. People today rarely find pleasure in getting physical books and reading them. Rather, they resort to reading the e-version from the internet. The libraries have suddenly become so outdated and no one wan ts to visit them. If we keep on continuing with the same trend, there will come a time in 2052 when we will reach a stage where we can perfectly relate to the story predicted by The Pedestrian. Individuals today rely more upon the entertainment they find on the internet. They download books from their iPhones through iTunes and read them, as it is so much more convenient. Hence, a person who is alienated from technology in the world of today will be treated as a stranger, just like Mr. Mead has been treated in The Pedestrian. Also, nowadays, people consider it abnormal to walk down the streets during night. People at large have become so insecure that they’d get scared if they see a man walking down their streets just randomly. Everyone has a dog which barks at even a slight movement. This is because of an every growing crime rate which is due to wide disparity between different segments of the population. With the growth in technology, nuclear families and globalization, peo ple have moved further away from the beauty of nature. This story also presents a very interesting phenomenon, known as â€Å"Culture shock†. People, when they migrate to foreign lands, find it hard to settle in. There are many problems that they face as a result of their migration. Logistical and lingual issues are just two of them. They undergo feelings of fear, unease, discomfort, agitation and frustration as a result of being implanted in a completely new setting and a