Assertion(A) Global enterprises significantly influence the internatio...
Assertion(A) Global enterprises significantly influence the international economy.
Reason(R) Global Enterprises are huge in size, deal in large number of products and use advanced technology and have network of operations all around.
Global enterprises, also known as multinational corporations (MNCs), play a crucial role in shaping the international economy. They have a significant impact on various aspects such as trade, investment, technology transfer, employment, and economic growth. The assertion that global enterprises significantly influence the international economy is supported by several reasons, including their size, product range, advanced technology usage, and extensive network of operations.
1. Size:
Global enterprises are often large-scale organizations that operate in multiple countries. Their sheer size and scale of operations enable them to have a substantial influence on the global economy. They have significant financial resources, which they can invest in various countries, thereby contributing to economic development and growth.
2. Product Range:
Global enterprises deal in a diverse range of products, catering to different markets and consumer needs. Their wide product range allows them to capture a significant share of the global market, leading to increased trade volumes and economic interdependence between countries. This interdependence fosters economic cooperation and integration.
3. Advanced Technology Usage:
Global enterprises are at the forefront of technological advancements. They invest heavily in research and development, innovation, and the adoption of advanced technologies. This enables them to enhance productivity, improve efficiency, and develop cutting-edge products and services. The widespread use of advanced technology by global enterprises has a ripple effect on the international economy, driving technological progress and increasing overall productivity levels.
4. Network of Operations:
Global enterprises have a vast network of operations spanning across multiple countries. They establish subsidiaries, branches, and supply chains in different regions, creating employment opportunities and contributing to local economies. Their operations often involve collaborations with local businesses, fostering knowledge transfer, skill development, and technology diffusion.
In conclusion, global enterprises significantly influence the international economy due to their size, product range, advanced technology usage, and extensive network of operations. Their activities drive economic growth, promote trade and investment, facilitate technology transfer, and contribute to employment creation. These multinational corporations have become key players in the global economic landscape, shaping the interconnectedness and dynamics of the international economy.
Assertion(A) Global enterprises significantly influence the internatio...
Both Asseration and reason are true and reason is not correct explanation of Asseration.
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