Globalisation Tecnology Transfer
Essay by people • July 11, 2011 • Essay • 286 Words (2 Pages) • 1,573 Views
QUESTION TWO
Multinational Enterprises are generating and transferring technology know-how, knowledge and innovations of products and processes over national borders to foreign countries for making research and development in especially chosen research and development locations.
1. Globalisation
Globalisation is defined as a form of an international strategy with cross border transactions of a company to become worldwide competitive ability through the use of location advantages and economies of scales.
Multinational enterprises with a high globalization affectation react by a changing environment area with worldwide standardization and adaptability in their local area.
Internalisation of the markets has the meaning of arise of economic overlapping over national borders above. Multinational companies are playing a very important role in pushing forwards the internalisation process for the future. With a continuing increase of environment conditions and a higher barrier of technology access multinational firms have to developed their processes and products over national borders for placing their position next to their strongest competitors. Multinational enterprises are playing also an important role for pushing forward the process of internalisation of research and development in foreign countries. It also can be said that:
2. Internalisation
The internalisation of research and development is mainly based on the internalisation of the turnover and the high of production of multinational enterprises. For defining how attractive the domestic or foreign country for research and development could be it has to be allocating the power and the development of research and development of the multinational company. The description of choosing a location or production process and also the motives for firms to take part on the internalisation process could be explained through theoretical approaches and models. Most famous author for these theoretical models is the economist James R. Markusen. He
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