The development and improvement of economy is a constant process that requires many efforts, expenses and use of certain strategies and methods. Moreover, economy is also dependent on its context. Such term and notion as globalization has acquired a wide acknowledgement and use in the economic context. It is quite understandable that in order to boost economy it is required to remove certain barriers and obstacles between national borders and different countries. Such an approach also makes easier the process of transmission of various goods and services. Many American corporations have already understood that this approach is really worth considering and nowadays such idea as globalization is present in almost every large corporation.
Working with other international companies became quite a popular idea for many American corporations. The main reasons and goals that these corporations are trying to gain concern the opportunity to boost the economy of their own country. Moreover, it should be mentioned that economic globalization is considered to be quite an active process of the economic integration. Besides, it is a multidimensional process. Economic integration means certain changes in the national resources. They become more internationally active and mobile. Furthermore, all these factors lead to the fact that national economies get an independent status. Besides, economic globalization, that is quite widespread in the American economy, means quite significant and global coherence of various economic activities. These activities are usually performed through such processes as transnational trade and capital flows.
One of the reasons to cooperate with international companies is the extension of the outlet. The main company organizes in a host country the production of the finished products and it also takes care of the provision of various services. In this case, an American corporation has to share the technology of the product manufacturing with some other international company. Moreover, this international company gets a right to use the trademark of the company.
The increase in export volumes is one more reason for the cooperation with the international companies. Many American corporations invest money in foreign affiliates. These are usually countries with cheap labor and rather rich natural resources. In such a way many American corporations are gradually improved and developed. One more reason is the provision of the raw materials. A significant part of foreign affiliates of the American corporations want to be provided with the natural resources. The acquisition of certain unique technologies is also very important.
Moreover, nowadays it is impossible to start a business without some initial capital. That is why only powerful and rather successful American corporations are able to afford cooperating with other international companies or opening their own affiliated branches abroad. That is why the majority of American corporations prefer cooperating with those international companies that have a rather high scientific potential. The main goal of all the American corporations is to increase their income and to develop their business and that is why they do not want to waste money. For instance, cooperating with Japan or with some EU countries is considered to be quite efficient and favorable. These countries usually have their own research centers, universities and this helps them to be quite successful in the world market. The improvement of the operating benefits is also one of the goals for the American corporations.
It is considered that the effectiveness of the organization and development of the foreign enterprise is largely dependent on the industrial relations between the main company and its affiliates. Each foreign affiliate is unique due to the specific conditions of the host factors. The main factors concern the origin of the staff of the foreign affiliate corporations, their local customs, labor relations, specific consumer needs, technology and the degree of the economic development of the country. Economic globalization in any country including the USA involves the reduction and the removal of all the barriers between national borders and the international countries in order to make the process of flowing of the goods, capital, labor and all the required services easier.
One more reason of the economic internationalization for the American corporations is the desire to grow and gradually improve the international competitiveness. Such an urgent necessity of the simultaneous competition in markets between a great number of new and quite serious competitors from the whole world is definitely a very important serious aspect. Such a need for competition serves as a certain risk, making necessary the availability of the rapid structural adjustments in different areas.
Economic globalization in the USA can be measured by certain factors. Such main flows as labor, goods and the required services, capital and technology fully characterize the process of globalization. One more general aspect of the cooperation of the American corporations with other international companies is that nowadays foreign direct investment is one of the most crucial and urgent factors in the development of global industries. In order to become successful American corporations work hard and try to create close linkages between the trade and direct types of investment.
Such process as economic globalization definitely has had an important and weighty impact on the economy of the USA. As it is known the main flow of the investment first comes to those regions where it is possible to exploit and use cheap labor force. However, after some time the wages increase gradually and in result, such an experience and cooperation become quite efficient and positive.
Nowadays cooperation with international companies is considered to be quite efficient and valid. Moreover, due to the appearance and wide use of such a notion as globalization it became possible to remove barriers between different countries and to cooperate. Many American corporations nowadays have foreign affiliates that bring them a stable and a rather significant income. However, such cooperation can involve certain difficulties and obstacles. For instance, some of the American corporations have to face such challenges as corruption, identity theft, gradually and constantly growing competition and some political disturbances.
As a conclusion, it should be said that the trust and professionalism of foreign business partners is essential in order to make certain business successful and to gradually boost the economy of your own country. These principles are the basic foundation of any International Business.