Globalization and Multi-national

Multi-national is different from globalization. For example,Multi-national corporation is a corporation or enterprise that manages production establishments or delivers services in at least two countries. These companies may not be a globalized company. Moreover, multinational company can have different offices in the world but those offices can be small co-ordination branches having coordination and representation functions.

Globalisation is a degree of interdependence that goes far beyond simple expansion of international trade, the main indication of the internationalisation of the economy in the past. It includes integration of production across national boundaries with significant increases in international investment by multinational enterprises. The production of automobiles, for example, which for nearly a century was concentrated geographically and at national level, is now done at a global level, with cars often being assembled from component parts that are produced by large numbers of supplier companies in dozens of countries. General Motors had, in 2003, a global presence in more than 190 countries, manufacturing operations in 32 countries, and tens of thousands of supplier companies worldwide, in total employing 340,000 people.

Globalisation is not just a change in production and supply relationships. It is also affecting the service sector. Delivery and sale of both private and public services, although still more adapted to local markets and conditions, are increasingly coming from multinational enterprises. Another very typical aspect of globalisation is the extensive and complex network of suppliers that often exists. This even leads to situations where a company is sometimes no longer able to trace the products it sells, or parts of it, back to its origins.

Globalisation also means unprecedented rapid and massive movement of financial capital. This interdependence and integration is facilitated and accelerated by new technology, particularly information technology (IT), even though this is not spread out evenly across the world.

multi-national
---> just simply means the issue involves a number of countries

globalization
--> a phenomenon occurs in political, economical and cultural aspect
--> refers to the breakthrough of national and geographical boundaries, different countries are integradting
--> "global village"