Global Economy – Global Business

“We are currently experiencing a transformation from which … new forms of politics and economics will emerge. There will then be no national products and technologies, no national business enterprises, no national industries. There will be no economies any more, at least not in the sense we know them. All that remains within the borders of a country are the people that make up a nation. “[3]

global player

In the course of globalization, the importance of companies operating with manufacturing facilities and subsidiaries worldwide has grown rapidly. We call these world-producing companies Globally Players. There are two types: multinational and transnational corporations. Multinational companies (multinationals, MNCs) have production sites in several countries, eg. T. as subsidiaries, but worldwide activities are largely coordinated in the home country. In trans-national companies (TNU, TNC), the subsidiaries are only loosely connected with the parent company and work largely independently. Because of their size and capital, many of these global players have a primacy in the global economy, such as: In the petroleum and automotive industries, where only a few companies today dominate the world market.

It was mainly the ones in the sub-cape. 10.1.1 (p. 350 ff.) – sinking transport costs, falling trade restrictions, simplified capital transfer – which enabled global players to shift individual production segments to countries where economic conditions are particularly favorable with z. As cheap labor, rich sources of raw materials, a large market and u. U. also low environmental requirements.

The main instrument of cross-border entrepreneurship is foreign direct investment (FDI). This refers to investment in the establishment of branch operations or the acquisition or participation in companies abroad. The primary objective of ADI is to exert influence on the strategies and activities of the newly established or acquired companies abroad.

The motives for ADI are very diverse. B .:

– development / securing of sales markets,

– avoiding trade barriers,

– securing of raw material and energy sources,

– Use of favorable site conditions, eg. Low labor costs, low land prices, tax benefits.

Since the mid-1980s, direct investment has risen faster than exports or other financial transactions – a clear indication of the increasing international involvement of economic activities.

As far as the distribution of FDI to the economic sectors is concerned, there is a trend towards the tertiary sector, in particular financial services and trading. In the Secondary Sector, almost all knowledge-intensive sectors are expanding, such as: As the electronics, pharmaceutical, chemical or data processing industry.

HOW DOES THE ECONOMY WORK?

1. GOOD TO KNOW – THE SMALL 1X1 OF ECONOMY

In the evenings, the latest news from politics and business is broadcast on television, every newspaper has a business section, parties make economic policy, and economics can be studied at universities and technical colleges. Much of our everyday life revolves around the economy, and each of us is more or less consciously daily part of it: So z. For example, every phone call, every SMS with your cell phone not only your pri¬vates doing, but also an economic act that costs money.

It is not so commonplace to think about what economics is and how it works. When you think about the question of what economics is, you probably realize that you can not easily answer that question right away. Therefore, you will first get to know basic knowledge about economics, in particular for a better understanding of the following important terms:

■ economic cycle,

■ distinction of company / company / company,

■ the difference between Abedarf and A need,

■ the AMarkt and its various types,

■ the understanding of AAngebot and A demand and

■ Value creation and value added processes and

■ Asocial market economy.

Probably you can collect a lot of keywords on the subject of economics, but then it is not so easy to organize these terms. This shows you how diverse the field of business is! As always, when dealing with particularly complex or complicated things, it helps to be guided by a definition.

Business is the area of society that deals with trade, finance, labor, taxes, production, goods and services. In addition to the economy, there are of course other parts of society, such. Politics, the legal system, art or science.

Of course, these areas can not always be clearly separated from each other: for example, if you go to a concert by a band, that’s part of the field of art. At the same time, however, it is also part of the economy, in this case the music industry. Because you pay admission for the concert, the artists receive their fee and the promotion company increases their turnover with such events.

The economy – cycle of give and take

If one means the economy of a country, one speaks also of the AVolkswirtschaft of a country. The concept of economics includes all economic acts that occur in a country. To explain the functioning of an economy is a complicated matter. Here, however, a simple model helps you to understand the individual relationships: the A economic cycle.

In the form of a circular model, it simply depicts all relationships that exist in the economy of a country between companies, private households and the state.

In the economic cycle the three different actors State, private households and enterprises are inscribed; they are, so to speak, the players. There are constant exchanges between the state, private households and businesses.