INR2001 Module B Quizzes Flashcard

INR2001 Module B Quizzes

Labour and resources Essay Example

Labour and resources Essay Example Labour and resources Essay Labour and resources Essay Developing nations are usually characterized by the need of skilled labour and resources. They also require markets for their goods so as to gain foreign currencies and in turn import whatever goods and services that they need within their boundaries. The reasons why Asian businesses become multinationals are not particular to the region to this effect. Their growth of these businesses has been conventional to what is seen as the established pattern in growth. This is due to the fact that most multinationals are usually set up to sell the goods that result from the expansion in industries. Therefore, the multinationals serve to provide goods and services to the countries in which they are situated. Secondly, these multinationals are main sources of employment for the expatriates from parent countries and the countries in which they do business. The employment might be in the form of skilled and semi-skilled work force being recruited to help the MNEs accomplish their goals. Recently, multinational ventures like the ones that China starts in Africa serve the purpose of acting partly as foreign aid. For instance, a construction company established to build roads in certain parts of Africa is paid for its service but the quarters introduced for employment of natives is restricted to unskilled labour. In effect, the multinational ventures provides services that are meant to develop infrastructure of the native country but in the long run, China benefits most from the venture. Trade, especially bilateral trade between the countries in the region is important in the growth of the countries. The output is mostly restricted to the technological grounds. This keeps the countries constantly importing foodstuff and labour. None the less, the economies in the region depend to a very low degree on exportation. This means that they export little to other regions. The data for this trend is mostly twisted to the Asian regions of the Asia Pacific region. A third of the countries combined GDP depends on exports. This is a direct indication that their economies can be sustained from within as they consume most of their goods. On the other hand, the US and Australia are active in the exportation of the goods and services within their boundaries. This is very pivotal in the growth and change within all their sectors involved in trade. The more they trade with other partners, the more change they are exposed to in terms of volumes of trade, cultures, and trends. In general, trade enhances change in very many aspects to keep the economies on a healthy upward growth trend. With this come so many other benefits (Peltonen Pula, 2009). Japanese investments in the other countries stemmed from the need to obtain raw materials for their manufacturing industries. The manufacturing industry was affected in the areas dealing in minerals. This was due to the demand of minerals for the production of goods. The energy sector was not left behind either. The encouragement by policies issued through government department urged industries to develop in foreign countries so that they could attain the needed minerals for processing and sale. This lessened the hustle of importation of raw materials and created the necessary links between the trading countries and Japan. Mergers and acquisitions also helped in establishing a stable trend in growth as these ensure a hold on most market segments dominated by the acquired establishments. The foray into these regions thus helps strengthen FDI for Japan (Takeuchi, 1990). MNE subsidiaries might not be like parent companies due to the fact that they face a lot of competition from the indigenous companies in the country that they are located. They therefore have a small chance of controlling trade in regions where other established economies have MNEs. For instance, Malaysian MNEs find it hard to exist in the regions which they are established partly due to the lack of sufficient funds as compared to companies from robust economies like Japan and the US. Therefore, the parent company might enjoy market segment manipulation in its country of origin but the ventures to the regional market require more efforts to establish a niche. Cross-border management does not provide a solid method of management as these ventures require a hands-on approach due to the levels of competition (Mulok, 2010). Conclusion To conclude, we can say that the impact of these ventures on the national management and the region as a whole is that it introduces policies that favour the establishment of healthy competition. Management techniques are also improved in the overall outlook. MNEs may or may not introduce monopolies. The monopolies are created in the case where there are few players in that particular industry. The human resource is also enhanced positively as more and more people join the workforce and reduce unemployment. Technology transfer is very important to the region. These establishments ensure that the technological development of these countries is positive and that they acquire knowledge in the different sectors that drive the economy. References Cho, Joong-Wan. (1997). Foreign Direct Investment: Determinants, Trends in Flows and Promotion Policies. Investment Promotion and Enterprise Development Bulletin for Asia and the Pacific. Pp 99-112. Lara, J. P. (2008). Multinational Corporations and the Emerging Network Economy in Asia and the Pacific. Routledge. Print. Wang, C. and Liu, X. (2002). Does Foreign Direct Investment Facilitate Technological Progress? : Evidence from Chinese Industries. Research Policy. Vol. 32, Issue 6, pp 945-953. Saggi, K. (2002). Trade, Foreign Direct Investment and International Trade Transfer: A Survey. World Bank Research Observer, Vol. 17, No. 2, pp 191-235. Lin, Y. J. (2004). The Peoples Republic of Chinas Future Development and Economic Relations with Asia and Latin America. Working Paper Series No. 21. Perkin University.