The Impact of Globalization on Business Enterprises: Mcdonald's

1264 Words Jul 30th, 2006 6 Pages
The Impact of Globalization on Business Enterprises: McDonald's
"Hours after the United States started its bombing raids in Afghanistan…angry crowds vandalized McDonald's outlets in Islamabad and Karachi…demonstrators burned an American flag outside a McDonald's restaurant in the resort town of Makassar and then stormed it. No company faces the issue of globalization more acutely than McDonald's." (Barboza, para 1) Often the symbol of American entrepreneurship and capitalism in the world, McDonald's has enjoyed successes with its association to the United States. However, that same association in recent years has become a vice to this fast-food chain as U.S. foreign policy around the globe is being met with resistance from enemies and
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global giants) takes great deal of heat.
Comparative advantages of developed countries over poor nations have recently become a fast-food industry challenge as well. "U.S. fast-food giants, in a move reflecting the crucial role of agricultural subsidies at the World Trade Organization, are for the first time injecting themselves into trade talks in a big way." (Kilman & Gray, para 1) Many fast-food notables have joined together to "support efforts to lower barriers to trade in processed foods and commodities, ultimately lowering the prices of ingredients world-wide. (Kilman & Gray, para 8) It is quite evident that the vast supply lines of fast-food franchises often originating in highly-developed nations are being affected by import barriers of less-developed nations. In many ways, this is a smaller nation's attempt to defend the smaller producers of that nation when dealing with these global giants. Here, trade theories, while having harmful affects on fast-food imperialism, tend to favor local economies, where in some cases, political and cultural values are protected. "A hodgepodge of tariffs and duties can hamper the ability of these companies to find the least expensive ingredients for

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