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A major reason for the rise of multinational enterprises is their demonstrated ability to organize business activities on a multicountry basis. Firm involves both geographic configuration and international coordination and integration. It means that the firm structures through international companies which carry out their activities. The structures include the international division, area division, global product division, and the transnational option. Each structure represents a compromise – an attempt to balance the inherent strengths and weaknesses of form chosen. Each structure must reconcile ease of administration with customer responsiveness and parent company versus subsidiary perspectives. All of this must be done in the context of the sovereign concern of different national governments, and sometimes widely different cultures. The globalisation is the most recent phenomenom among global issues reffering to the process of creating wider opportunities for global economic integration.
By Banerji and Sambharya (1998), competition in global industries is shifting increasingly from interfirm rivalry to rivalry between networks of firms. Strategies for individual firms are thus contingent on the degree of interdependence that exists between them and the core firm in the network. Affiliate firms have two options available: first – enter competitive strategic alliance with competitors or second – enter a symbiotic strategic alliance with the core firm of the network organization. Holt (1998) explains that many international organizations involve complicated associations and alliances between multiple divisions and individuals on several continents. This structure may encompass hundreds of operating divisions with multifaceted purposes, often performing interdependent activities. Ownership can also be complex, bringing together private and government interest, holding companies, joint venture partners, and networks of subsidiaries. The organizational chart (if one exists) might resemble a spider web more than a pyramid, and even those threads may vary regularly since global activities have changed so rapidly that a company´s organization often reflects a fluid mosaic of relationships. Within this framework, companies of many nationalities expand into international markets. Some of them simply export, others invest in foreign facilities, and global companies create organizations of integrated technology with world – brand goods, services, and system of management. Within such a variable world, no single description adequately characterizes international business. International companies choose to expand in many ways and they employ a wide variety of strategies. Specifically, it will explore recent social and economic changes for major economies and for those in transition, followed by a look into technological factors that influence growth and international management. It will also address important challenges facing managers within culturally diverse international organizations. Due to the difficulty of integrating already existing foreign management, cultural differences are likely to be especially important in the case of an acquisition. In contrast to an acquisition, a joint venture frequently serves the purpose of assigning management tasks to the local partners who are better able to manage local labour force and relationships with suppliers, buyers and governments, but at the cost of sharing control and ownership. Based on these facts, the authors concluded the greater cultural distance between the country of the investing firm and the country of entry, the more likely

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the firm will choose a joint ventures or wholly owned greenfield over an acquisition.

Globalisation has had significant impact on almost all economies of the world, with immense effects. It affects production of goods and services in these countries. Further, it affects the deployment of labour and other inputs into the production process. In addition, it also affects investment, both in physical capital and in human capital. It affects technology and results in the diffusion of technology from initiating nations to other nations. It also has major effects on efficiency, productivity, and competitiveness. Even thought globalisation affects the world’s economy in a very positive way, its negative side is present too. Globalisation is just like a two-edged sword, bringing us not only a series of enormous benefits, but also a potential destruction. No one can deny its presence at the same time; we must make sure we prevent its negative effects. There are abundant facts to prove its positives.

Taking international trade as an example, it provides people from trading countries more chances to enjoy new products which they would have never come across without having to travel to another country. Besides that, the ongoing progression of products also provides a large number of employment opportunities for the local people who in return increase the standard of living for their families or individuals. Furthermore, it is an effective approach to promote cultural communication among different countries. Although there is high number of benefits, we cannot
neglect the by-products globalisation brings along with it. For instance, cultures of ₁₇
developed countries are replacing the undeveloped countries to some extent. More
and more people, especially the young generation, give up their local culture and focus their attention on the foreign ones. In conclusion, due to the existence of both positive and negative aspects that globalisation brings about, we should do our best to control its negative aspects while enjoying the positive ones.

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