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Globalisation plays a huge role in how the global economy functions. It ‘shrinks’ the world and creates new opportunities for businesses everyday. Ever since the 1970’s barriers have been lifted from countries and the globe has become a united global market in which transnational corporations control a large proportion of trade. Globalisation has been driven by many factor, including; transnational corporations, consumers and governments. in order to expand your business into a TNC, you must first devise a global business strategy. This could include merging with another business or exporting your goods. During this time of world trade and profitability, businesses must consider their ethical and social responsibilities to the global population

With the increase in internationalisation of production, businesses have been able to outsource their production networks to low wage countries and in doing so, have made it easier to make the transition to a TNC. TNC’s are also clearing the way for new global businesses by using their influence and market power to override countries government policies to reduce taxes affecting the free flow of goods, services and capital such as tariffs.

This increase in globalisation has led to consumers demanding more of a good or service which creates more opportunities to expand overseas through the use of merging with an affiliate business or TNC or merging to create a higher quality, cheaper product, which consumers want more of.

As we enter this new technological age, businesses have been allowed, through the use of microprocessors, to create complex and advanced information networks to communicate on a global scale easily. This advancement in communication technology such as the World Wide Web and telephones has given businesses a greater choice of workers, expertise and materials to expand into different countries easier. Faster travel time from country to country has enabled businesses to view the world as a single...