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Multinational enterprises (MNEs)

Multinational enterprises (MNEs)

Multinational enterprises (MNEs)

The use of multinational enterprise system globalization 2.0 started after WWII, because of the lack of things that were needed during the war. The global system is made up of multiple companies from around the world. Globalization 1.0 was introduced during the early years of WWII and lacked the items need to sustain a certain level of certainty to ensure the sustainment of the war.   Globalization 1.0 was changed during the year 1945 throughout the 20th century because of the lack of supplies produced and manufactured to help win the war and save lives.

The 21st century brought a change to globalization 2.0 and converted it to globalization 3.0 and made the system more diverse to help countries succeed during wartime. The MNE’s recognizes from a multinational company with self-contained operations in a few selected countries to a more seamless global enterprise with centers of expertise. Each of these centers of expertise is a hub within the global network for delivering products and services.

“When the world’s economy grows on the strength of big companies; Globalization 2.0, from 1800 to 2000, when “the key agent of change, the dynamic force driving global integration, was multinational companies” driven to look abroad for markets and labor, spurred by industrial-age “breakthroughs in hardware,” and Globalization 3.0, from 2000 to the present, when “individuals are the main agents doing the globalizing, pushed by “not horsepower, and not hardware, but software” and a “global fiber-optic network that has made us all next-door neighbors” which was quoted by Warren Bass from the Washington Post in April of 2005. (Brainmass)

The negative result of a change from Globalization 2.0 to Globalization 3.0 is the ability to make mass quantities of equipment or products to support any size need or want by a consumer in a war zone. The response of a company is to adapt, to each situation without worrying about the cost.

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Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that supplies a product or service to an MNE.

Multinational enterprises (MNEs)

Multinational enterprises (MNEs)

How might your relationship change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations? Being a “small firm”, what are some examples of how this relationship change could potentially benefit the company? How might the change affect a small supplier in a negative way?

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