Global Corporations refers to the process of uniting many countries around the globe towards a common goal. They have a set of values and policies that govern their co existence. The integration of these values forms the basis of the rules and regulations that govern the corporations globally. Globalization processes significantly affects national economies (Scott, ed. 1997). The new era has global economy as an emerging trend in finance, production and consumption. A globalization change is the leading force behind the growth and development of national economies. Nations embrace the idea of globalization as a global process. National corporations combine different ideologies, which bring about a powerful economic growth within the nations. Global corporations have a better future because thy have no economic boundaries unlike organizations that restrict themselves to a country Business Week (14 May 1990).
Corporate partners around the globe have programs that leverage commitment levels and the well being of global and national corporations. In this era of globalization, countries recognize the need to unite together for economic benefits. The existence of global corporations helps in bringing about economic growth all over the world. It also encourages sharing of ideas and expertise which increases economic growth prospects. The global corporations have rules and regulations that are fair to all member countries. This gives countries a fair opportunity to participate in trade activities. Global corporations ensure uniformity and minimize the existing trade barriers. This makes accessibility to the market easier for member countries thus improving their economic status. The global corporation policies significantly contribute to the economic growth and development of the developing countries. Many countries in Africa continent benefit economically from being members to the global corporations.
Some of the countries have a new status in industrialization. China is a superb example of a global corporation that has a significant impact globally. China penetration to other countries has been of substantial help in order to obtain raw materials and market for their products. Chinas contribution to the economy is quite remarkable. They produce a wide range of affordable services and products. China technology is one of the leading globally. Developing countries like Kenya imports products like mobile phones and other electronic accessories at highly affordable prices. They also offer their expertise in building and construction of infrastructure and superstructures in developing countries like Kenya (Scott, ed. 1997). This helps the developing countries to embrace modern technology. The company introduces the new technology to the host country. The country leaps many benefits from this association.
Other examples include national oil companies, banks and automobile companies which have a high status in relation to their superior brands. Brand names like Unilever, Coca cola, Samsung, Shell, General Motors, Toyota and Hyundai have global recognition. This increases the accessibility of these products in the market globally. The manufacturing corporations benefit from the large and open market worldwide. This improves the economic status of the corporation. The end users of these products also benefit from the supply of superior products. The products are long lasting and genuine thus making them the brands of choice among many countries (Nguyen, 2012).
Transnational corporations, helps to facilitate globalization process in terms of resources, production and consumption. Many corporations prefer to base their operations outside their home countries (Nguyen, 2012). This is one of their strategies of implementing development in their country. However, the poor and developing countries face challenges since their associates are at an advantage because they have a higher resource and capital power than the developing countries. Some countries also use their superiority complex to impose their ideologies on others. For example, the United States corporations try to dominate and manipulate other countries corporations. This faces resistance and opposition from other countries like Japan, Brazil, Australia and Europe. Global corporations can de motivates developing countries since they have a domineering attitude and feel more superior. Countries like the United States possess a greater economic power than most of the other corporate countries globally (Trade and Competition Policies for Tomorrow Journal).
Over the years, transnational corporations have been on the increase. Many companies globally earn their revenue from the foreign trade dealings. This helps to strengthen the economic status of the home country of the corporation. The country benefits from the activities of the corporation through taxes and other opportunities arising from the corporations. Some corporations like the Coca Cola Company, Nestle and other superior brands base their companies in different regions, in the world (Trade and Competition Policies for Tomorrow Journal). This benefits the host countries economically. The companies rely on local resources in terms of labor and even raw materials for their companies. This helps to develop the country and uplifts its economic status. The coca cola company has many branches worldwide, and this benefits the individual host countries significantly. The existence of such corporations also helps the host countries to develop its infrastructure especially when they have to transport raw materials and end products (US magazine, 1990). Some corporations develop their environs as a means of demonstrating their socio corporate responsibility to the society. Major corporations that carry out their operations in the African continent have a vital contribution towards economic growth of the continent. They companies also increase accessibility of high quality goods the continent. Examples of the companies that have branches in Kenya include Coca cola, Nestle, Samsung, and Toyota Kenya among others. This contributes to the economy of Kenya significantly ((US magazine, 1990). The home countries of such corporations also benefit from the existence of ready markets for their goods. All the stakeholders benefit mutually, and this acts as a source of revenue to the participants. Existence of global corporations significantly contributes to the world economic growth. The major contributions of these corporations have an enormous impact in the economic status of many nations globally ("Trade and Foreign Policy Attitudes." Journal of Conflict Resolution 54.5).