The Impact Of Economic Growth, Political And Economic Systems On The Essay

The intrusion Of Economic Growth, Political And Economic Systems On The Internalization Of An Organization - Essay ExampleCollective suppuration is the major slogan put forward by globalization. The concept of business has been changed from the domestic spectrum to the international spectrum as a result of globalization. It should be noted that many of the prominent organizations in the world were struggling to explicate properly because of the lack of opportunities for expansion in the domestic market. For role model, before the introduction of globalization American coffee tree actr Starbucks was struggling to expand properly since they had coffee shops virtually in every corner of America. In other words, American market was highly saturated for Starbucks before the introduction of globalization. However, globalization inspection and repaired Starbucks immensely in expanding their business beyond the boundaries of America. Internationalization of a business or an organizati on depends on many factors such as the political, scotch and cultural factors in the target country. Suitable business climate is essential in the target country, for an organization to think ab go forth(predicate) offshoring their business to that position country. For example, no organization would think about establishing a business in Syria at present because of the huge political problems going on there. like way, only few organizations may think about expanding their business to underdeveloped countries such as Ethiopia or Somalia. On the other hand majority of the organizations are looking for opportunities in Asian countries or BRICS (Brazil, Russia, India, chinaware and South Africa) countries because of the huge economic developments in those countries. In short, political and economic climates in a particular country play an important role controlling its ability to attract foreign direct investments. This subject analyses the impact of economic growth, political a nd economic systems on the internalization of an organization. What impact does a countrys political and economic system have on its economic development? chinaware is often cited as the best example to prove how well one country can utilize the possibilities of globalization to stimulate economic growth. It should be noted that China was the number one critic of globalization initially. They believed that some hidden agenda is commode the introduction of globalization by large(p)ist countries. They argued that globalization is an attempt to loot the wealth of poor countries. Overholt, (2005) pointed out that China opposed the global economic order, political order and the major global institutions such as the IMF and the World Bank before the reforms started in China (p.3). According to Hersh & Schmidt (2000), China like socialist countries comprehend globalization as the continuation of capitalism (p.3). However, they quickly realized the possibilities of global trade and glob alization and started to make immense changes in its political and economic systems to attract foreign direct investments. It should not be forget that Deng Xiao Peng was the architect of modern China even though monoamine oxidase Zedong is believed to be the father of modern China. Mao was adamant so that he never deviated from the policies of communism. He never allowed foreign organizations to invest in China and private capital in any form was unacceptable to him. On the other hand, Deng welcomed foreign capital and private capital with both hands. He has realized the fact that China cannot develop properly with the help of internal resources alone. Being the most heavily populated country in the world, internal resources of China were lacking(p) to meet the needs of the people. Chinese government was struggling to ensure proper living standards to its citizens