International business and multinational enterprise Essay

International business and multinational enterprise - Essay Example It would also show why the Russia has become an attractive destination for the foreign firms. Four case studies would also be evaluated and analyzed for their success or failure in the foreign soil. Globalization has been one of the most portent forces that have compelled the global community to cross border restrictions for the wider welfare of the people. Social scientists assert that globalization has broadly brought together goods, services, capital, technology and people across national borders to evolve new global market with common goals (Hill, 2009; Sirgy et al., 2004; Black, 2002). Indeed, the nations have increasingly become interdependent for their socio-economic development. The globalization has reduced the geographical boundaries and has brought regional and local interests on the world map (Croucher, 2004; Tiplady, 2003; Held et al., 1999). Thus, the role and responsibilities of states have become more pronounced vis-Ã  -vis creating a conducive environment for foreign investment. Globalization has also greatly opened new avenues of exploiting competencies and resources for businesses across nations. Through foreign direct investment or FDI, cross border mergers, partnership, export and import of goods and services, the process of international business are expedited. But the policies and legal paradigms of the government become key elements that inculcate trust amongst the foreign firms. Indeed, the political, legal, economic and technological environment created by government initiatives through policies and plans are important criteria for international businesses. Zonis (2000) asserts that the political risks generate an environment of uncertainty primarily through the exercise of power by the government and non government agencies. Thus, non democratic states or states that are transitional economies are prone to exhibit controls which