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Think about the forces that have resulted in increased global integration and the growing importance of global management: The Changing World Output and World Trade Picture Country Focus: India’s Software Sector The Changing Foreign Direct Investment Picture The Changing Nature of the Multinational Enterprise Management Focus: China’s Hisense – An Emerging Multinational The Changing World Order The Global Economy of the Twenty-First Century Identify your top two forces that have resulted in increased global management. Describe why you chose these specific two factors and support your position. Provide an example within your company or an industry of interest where these factors have resulted in strategic decisions and tactical plans for global integration and global management.

In the modern world, there has been an increased need for global management and integration due to technological and economic changes worldwide. Liang (2017) defines global integration as the process where corporations use particular strategies to operate similar to other corporations worldwide such as product standardization. Companies need to control and direct international operations to have a competitive advantage. There are various forces that have led to increased global integration as well as the need for global management. This paper examines two forces; the changing foreign direct investment picture and the global economy of the twenty-first century. 

The growth in foreign direct investment (FDI) is a critical force that has triggered global integration and global management. Most countries globally dominate on FDI as a source of revenue and major investment, thus, nations are motivated by the desire to explore production activities and trading in foreign countries. Since the 1960s, trade barriers have been eliminated leading to free movement of capital, goods, and services across nations (Piketty, 2015). For instance, GE Company invested in China which was an emerging developing country with rapid economic growth. FDI has led to rapid growth globally and the development of business operations. Piketty (2015) outlines that since 1990, FDI has increased dramatically leading to the need for proper management due to competition. Companies such as Uber have directly invested in countries across the world and managed the business operations due to the force.

The second force that has led to increased global integration and management is the global economy of the twenty-first century. In the current world, international trade organizations such as the World Trade Organization (WTO) and regional trade organizations have led to the removal of trade barriers making easing the flow of goods and services across nations. Many countries have joined the trade organizations allowing investments in their countries. The development of technology such as the internet and good transport has triggered the growth of the global economy (Liang, 2017). Companies such as Alibaba has been able to market and sell its products through e-commerce. The company has also enhanced its management due to international competition from tech companies such as Amazon. 


Piketty, T. (2015). About capital in the twenty-first century. American Economic Review, 105(5), 48-53.

Liang, F. H. (2017). Does foreign direct investment improve the productivity of domestic firms? Technology spillovers, industry linkages, and firm capabilities. Research Policy, 46(1), 138-159.

by EssayRoyal, Dec. 10, 2019, 5:30 p.m.

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