With the enormous potential of emerging digitization, comes growth of international communication and advance in data processing, making a global market open 24/7. FDI plays an extraordinary and growing role in the global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. Any decision on investing is a combination of a number of key factors including: assessment of internal resources, competitiveness, market analysis, market expectations, trade laws and country’s state of affairs. The new establishments/a greenfield investments, show the new pattern in trading - the shift of center gravity of the international trade towards the new powers. The local plant, building a localized product, will allow manufacturers to avoid exchange rate fluctuations and therefore keep the cost down. They will also closely monitor the host country’s market trends, while reducing vulnerability to extended supply chains. The location-specific advantage of production within the country is of importance too. Foreign companies bring new technologies and efficient operations into the …show more content…
In the undeveloped countries, the worker rights are being violated. Workers have to work in sweatshop conditions, long working hours, low wages, lack of regular contracts, and systemically harmful conditions. Child labor, and the absence of the right to bargaining power are reportable an issue. Some countries fear that their individual cultures are becoming overpowered by Americanization. The multinational corporations, which were previously restricted to commercial activities, are often influencing political decisions. There is also a fear that these businesses can be a threat of corporations ruling the world, because they are gaining power due to globalization. Globalization also makes it easier for rich companies to act with less accountability. Because of these continuous unresolved issues, I believe that there is an immediate need for regulations and laws in order to establish minimum standards between nations. This can be achieved only with trade agreements that have at least minimum barriers to comply to, and to protect us all. The trade agreements should benefit everybody on a national and global level; they should create a healthy