Describe the forces of globalization and its implications for the multinational firm.

The globalization forces have had a profound impact on the multinational companies. One hand, globalization opened up new market opportunities for multinational companies, which allowed them to maximize their profit by accessing cheaper resources and labor, as well as capitalizing on the new demand for services and goods from regions that were previously untapped. Global trade agreements also allow multinationals to lower tariffs on import/export, making it easier to enter foreign markets.

Globalization also brings with it challenges, such as the need to remain competitive and agile due to products being created so quickly. There may also be increased pressures from government regulations or taxes, or price wars as other multinationals fight for market share. Despite these potential difficulties however if managed correctly a firm’s ability to leverage its expertise across multiple borders can lead toward greater success than ever before possible