Global brands need to generate huge profits and for reach them a large number of companies establish or contract operations in countries and regions where they can exploit cheaper labour and resources. The power of brands is in to cross borders and be recognized globally. To achieve this aim they invest heavily in advertisement and cares enough about its reputation to work hard to remedy any problems that the customer may have later.
Global brands need to generate huge profits and for reach them a large number of companies establish or contract operations in countries and regions where they can exploit cheaper labour and resources. The power of brands is in to cross borders and be recognized globally. To achieve this aim they invest heavily in advertisement and cares enough about its reputation to work hard to remedy any problems that the customer may have later.
Global brands need to generate huge profits and for reach them a large number of companies establish or contract operations in countries and regions where they can exploit cheaper labour and resources. The power of brands is in to cross borders and be recognized globally. To achieve this aim they invest heavily in advertisement and cares enough about its reputation to work hard to remedy any problems that the customer may have later.
Name: Mariana Mello dos Santos Teacher: Peter Bennion Student Number: 200904062 Course: Chemical Engineering Group: Red Date: august/2014
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Society is living in the era of globalization, an era where the whole world is connected. There are no more borders among countries, there are no more barriers to prevent the spread of consumption. The volume of goods, services and investments crossing national borders has expanded faster than world output for more than half a century (Hill, 2011). According to Hill (2011) over $4 trillion in foreign exchange transactions are made everyday, more than $15 trillion of goods and $3.7 trillion of services are sold across national borders. An element key of these large financial transactions caused by the process of globalisation are the multinational corporations. Gray (1999) states that around a quarter of world trade occurs within multinational corporations. These huge companies have too much power and exert an extraordinary influence on society just because of one simple word: the brand. In the middle of 1980 management theorists developed an idea followed by most companies that successful corporations must primarily produce brands, as opposed to products (Klein, 2000). The power of brands is in to cross borders and be recognized globally. To achieve this aim they invest heavily in advertisement and cares enough about its reputation to work hard to remedy any problems that the customer may has later (Anholt, 2005). Due to it a customer feels safer buying a product with a famous name than buying an unbranded one even if both of them have the same quality. However, there is a price for this safety and frequently the branded product cost much more. 3 Socially, multinational corporations strongly invest in advertisement as was said before because is the only way in which consumers who own everything they want can be stimulated to continue consuming as if they still needed things (Anholt, 2005). Nonetheless, global brands need to generate huge profits and for reach them a large number of companies establish or contract operations in countries and regions where they can exploit cheaper labour and resources. For example, in 1998 a survey made in China showed that manufacturers for companies such as Nike, Adidas and Ralph Lauren were paying as little as 13 cents per hour nevertheless the living wage in that area is around 87 cents per hour (Smith and Doyle, 2002). On the other hand, some company owners may argue that multinational corporations also help society and developing countries creating a large number of jobs as was showed in a research from United States that Dell Computers Texas operations employ 12500 people directly and are responsible for creating some 30000 jobs in total (Anholt, 2005).