What Is Globalisation And It's Advantages To Multinational Enterprise?


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Globalization provides lot of advantages for multinational companies. The basics of globalization are which country can produce which product of high quality on low price. For example, Sony Corporation, Japan, have very high cost of manufacturing TV in Japan. But this cost is very low in China. Similarly, Liver Brother's manufacturing Lux in England at a very high cost, but in Thailand, it is very cheep. In globalization, China can manufacture TV for Sony to sell in all worlds. Similarly Thailand can manufacture Lux soap for all worlds. To be a successful company in globalize world of marketing, it require high quality product on low cost and availability throughout world. The brand name will not contain the name manufacturer country. Only the corporate name is required like Sony Corporation, Liver Brother's etc. The multinational companies require one large manufacturing unit in one country instead of having many plants in every country. This will save cost.

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