UNDERSTANDING STRENGTHS AND WEAKNESSES OF INTERNATIONAL BUSINESS IN HOME COUNTRY

UNDERSTANDING STRENGTHS AND WEAKNESSES OF INTERNATIONAL BUSINESS IN HOME COUNTRY Nowadays , the number of foreign firms in a country is noticeable enough and still growing . It can be seen from the cars , to the food , clothes ,etc . And now globalization is now widely accepted by most nations , from industrialized countries to third-world countries . Actually , with the acceptance of some countries of the so-called globalization , the chances of entrance of foreign firms to a country are increasing . That is because globalization does not restrict the flow of goods , investments ,or any trade between other nations (Center for Alternative Development Initiatives , 2003 . Foreign firms have more access to the country ‘s resources , richness , and trades compared to those countries that do not widely accept the idea of globalization . The can use the resources that can be found on the country as long as the government and the law allow such things .And with the entry of foreign firms to a country , they will have to compete with the domestic firms that are already present in the country before their entrance . So , the entry of foreign firms , this does not mean that they can already dominate the economy of the country . They still have to show the possibilities and the advantages that the country will get upon their entrance . They will have to offer some things that later on will lead on their advantage to the country .One of those oblations is giving more wages . A study from Malchow-Moller , N . et al (2007 ) that have been done it related to this issue . They found some considerable evidence that supports the statement those foreign firms offers more wages compared with domestic forms . Foreign firms ‘ higher wages compared to domestic firms ‘ wages is the foreign companies ‘ first attraction that they are going to offer to the people of the country , because higher wages could mean that the people will now have more security in terms of reaching their basic needs . The possible outcomes of foreign firms ‘ high wages is that they will have more employee with more experience regarding the work and the employee from domestic firms will likely to transfer and be pirated by the foreign ones . The excellent and experienced workers might transfer to the companies by which they are going to have more advantages and more opportunities . In addition the entry of the foreign firms may affect the economy of the country that they are penetrating to since they affect the “rule of the games , as Bellak , C (2004 : 40-41 ) said on his paper . They will choose those moves in order for them to give more probabilities to be noticed . They will have chances to be easily accepted by the country ‘s economy because of the innovations that they are willing to share and offer . Actually , he also added that the type of entry of foreign firms may have some effects since they might have some advantages upon entrance . Affecting the rules of the game may later on implied to ruling the…

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