The paper "Key Changes Relating to GlobalForeign Direct Investment " is a perfect example of an assignment on business. The development of firms in the global market has to be carefully designed otherwise the risks involved can be significant. In practice, it has been proved that the use of theoretical frameworks related to the specific activity can help firms to control threats and to develop strategies that will be flexible and clear. In any case, it has been proved that a global strategy cannot be effective unless it is aligned with global market trends.
On the other hand, international market is not standardized, meaning that its performance cannot be easily predicted even in the short term. For this reason, before expanding globally, a firm needs to check the changes occurring in key economic frameworks, such as the Foreign Direct Investment and the International Production. In this paper, the challenges that firms face when developing their global strategy are presented and analyzed. Primarily, the most important trends in regard to FDI and international production are explained. Reference is made to 2012, as compared to its previous year, so that assumptions can be also made in regard to future market performance.
Moreover, three important theories related to the growth of multinational enterprises are presented. These theories have been employed for showing the factors that can impact business activities at international level. The elements and the implications of these theories are made clear through the case of a popular British firm: GlaxoSmithKline. The above firm is well established in the international market but its practices in regard to innovation have caused concerns in regulators and theorists at local and international level.
On the other hand, the firm’ s success has been mostly based on its efforts for promoting innovation; this means that employing unique business practices for expanding globally may not be always acceptable, especially if ethical or legal concerns exist. Part 1 Summary of key changes relating to global foreign direct investment and international production in 2012 over the previous year.
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