The paper " Opportunities and Threats that Globalization Has on MNCs in Emerging Economies - Sinopec Corp" is a good example of a business case study. Globalization has actually acquired emotive force whereby some individuals usually view it as a process which is beneficial as well as the key to the development of the economy in the world. The increased globalization has affected the performance of Sinopec Corp which is a Chinese MNC operating in the energy sector in different parts globally. There are different challenges and opportunities that have been experienced in Sinopec Corp due to the effects of globalization.
Considering the increasing technological advancements that have been taking place globally has been associated with the aspects of increased globalization (Guillé n and Garcí a-Canal, 2009). Therefore, globalization has greatly affected the MNCs in the emerging economies because of its opportunities and challenges that affect their operations. The effect of globalization has been viewed differently by the stakeholders depending on the challenges and the opportunities that have been experienced in the MNCs in the emerging economies. Some view globalization positively while others have a negative view.
For instance, some of the individuals usually view globalization with a hostility perspective whereby they hold a belief that globalization results into inequality among the nations in terms of the employment, social progress and also living standards (Luo and Rui, 2009). Besides, globalization usually provides great opportunities for the development in the entire world, even though the development does not progress evenly. This essay is exploring the challenges and opportunities that are associated with globalization in the MNCs in the emerging economies using Sinopec Corp. Opportunities of globalization There are many opportunities that have been realized by the MNCs in the emerging economies and in particular Sinopec Corp.
The opportunities that are associated with globalization have played an important role in enhancing the operations of Sinopec Corp. For instance, in some of the emerging economies, the aspect of globalization has been integrated into the economy more rapidly as compared to the others hence growing faster and also reducing their poverty level. Economic globalization has been among the major opportunities that are being realized by the MNCs in the emerging economies are able to utilize (Kumar and Liu, 2005).
Economic globalization in this context to the historical process which is usually brought about by the technological advancements taking place globally that help in improving the operations of the MNCs. Besides, human innovations have been among the opportunities that have been availed by economic globalization to the MNCs in the emerging economies. For instance, Sinopec Corp has been in a position to achieve its set objectives because of the availability of human innovation that has been possible through globalization. Globalization has increased trade opportunities for the MNCs in the emerging economies where firms like Sinopec Corp have the opportunity of doing business with many developed and developing countries.
Economies can be highly integrated through globalization where economic integration plays an important role in the process of making sure that more business opportunities are availed. For instance, Sinopec Corp has been enjoying the increased business opportunities that have been made available through economic integration achieved because of the increased globalization (Sauvant, 2009). Besides, technological advancements are among the opportunities that are linked to globalization as firms are able to share technological ideas leading to the increased chances of improving the technology status in the MNCs in the emerging economies.
The aspect of globalization has resulted in technological improvements which have facilitated business transactions internationally in both trade and also in financial flows.
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