The modernization of the world and the ever-changing trends has given rise to the multinationals. The change in the taste and the preference patterns of the consumers has affected the growth of the multinationals. The changes that the multinationals brought about in the internal structure are an important consideration. The most important change can be noted in the fields of the economic status of the market and the consumer behaviors at large. Depending on the change in the tastes and the shifts in the preference of the consumers from the necessity to the leisure goods determines the factors of the change that is being noted in the economic structure. The forces of the improved transportation and the communication facilities have a huge impact on the changes that can be noted in the economic structure largely.
The industrial developments that the multinationals undertook are subjected to the immense amount of changes in the fields of proper channels of communication and transportation. It helped them in reducing the costs that were involved previously in undertaking the processes. The developments are based on the modifications and the innovation in the technology that helped in undertaking the change. The discussion aims at understanding the transition from the historical point of view to the relevant era of the technological advancements in order to understand the range of the change. It determines the change in the economic structure of the society and the multinationals at the same time.
The main purpose of this discussion is to understand the changes in the social and the economic structure and the impact of the change in the present days. Globalization has affected the world largely. The intermingling of the people from different cultural and heritage background is affecting the process of evolution of the change and thereby modifications have been brought to the channels of communication procedure and the transportation of the products. It created a heavy impact on the economic structure. The following discussion aims at understanding the evolution process and its impact on the economic structure.
The modern world with its technological advancements and the changing trends and preferences are subjected to modifications that must be undertaken by the firms and the companies to survive the changes and make them sustainable. The business processes are adhering to the changes that are required to be brought about in their structure that is actually facilitating them to undertake cost-effective measures. The measures help them in making the processes more transparent and efficient through the modifications that they undertake in the communication and the transportation process (Saaty & Vargas, 2013). The development of the global economic status has been into research since the traders of the West and the East came together to exchange goods and services with the objective of earning a return on their investment.
The development and the involvement of the nations in the world trade have significantly changed the economic conditions of the nation. The per capita income of the people have increased according to the changes brought about by the multinationals in their processes and which affected the economic status of the nations at large. The nations, which denied the involvement in the world trade, were found to be less developing (Pejovich, 2012). Not only did trade happen between the nations, but also the exchange of the culture and heritage. The ideas that are being used by the companies in one nation also were exchanged with the other nations. Therefore, a development in the economic status was noticed.
Nationalism gave way to the Bullionism where gold and silver determined the wealth and the progress of the nation. Another form of determining factor evolved gradually where the favorable balance of trade was considered to be the determinants of the progress of the nation (Leamer & Storper, 2014). The balance of trade implies the excess of the exports over the imports undertaken by a nation. After the undertaking of the considerable changes in the structures of the companies and the determining factors of the progress of the nation in the economic structure, the economic progress depended on the modifications of the communication and the transportation.
Globalization has a major impact on the modifications made by the organization in the present era of the technological progress. The technological advancements in the field of communication and information have helped a lot in the advancements that the economies have made in the current scenario. Communication being the backbone of every business organizations makes the process of exchanging the thoughts and integrating the actions accordingly (Batten, Casti & Thord, 2012). The latest advancements in the communication procedure are an important step that the multinationals undertook in the present era in order to enhance their skills and make considerable progress.
The usage of mobile phones and the usage of the net have helped in bringing a revolutionary change in the pattern of the communication (Wild, Wild & Han, 2014). The channels that were taken earlier for communicating with the people are being modified in the modern world and the application of the proper channels while communicating is an important modification that the companies undertook. This brought about a significant progress in the economic structure of the company and the nation. The World Bank states that the people in the nations that are engaged in the international trade are having a higher standard of living than the countries who have not indulged in the international exchange (Gunasekaran & Ngai, 2012). In this era of globalization where cultures and heritage comes together in order to achieve the common goals, communication plays an important role in integrating the people and helps in the proper coordination, ensuring the progress of the multinationals.
The introduction of the internet to the people in the year 1991 was the cause of the revolutionary change in the methods of communication. It actually brought the nations and the businesses closer and made communication cheaper and accessible (Foster & Wood, 2017). In the year 1965, the United States launched telephone circuits in order to support commercial communication. Today, some four hundred commercial communication satellites have been launched which is transmitting information across the world. The considerable change in the communication system and the procedures that are being undertaken helps in determining the economic status of the nations (Garicano & Wu, 2012).
On the other hand, transportation is again an important factor that helps in the undertaking of the advancements in the economic structure. Globalization has helped the nations in undertaking the international trade. Now, the international trade can only be undertaken with the help of effective means of transportation, which is both fast and cost effective at the same time. The advancements in the means of transporting and shipping the goods are an important phenomenon supporting the economic growth of the organization (Cowhey & Aronson, 2012). The cost effective transportation procedure and the cheaper rate of shipping the commodities is an important modification that was undertaken by the companies. The modifications that were undertaken in the methods of transporting the items and the cheaper rates help the multinationals to save on their return on the investment that they undertook during the process. Moreover, the fast delivery of the goods and services help in maintaining the brand loyalty among the target customers. The multinationals therefore aims at retaining the foreign clients thereby making a considerable profit out of the transactions adding up to the national income and thereby affecting the change in the economic structure.
Globalization have affected the world and brought about a change in the taste and the preferences of the consumers at large. People opt for the products from abroad, though it is a typical mindset of the people as they think that the particular nation excels in the production of the commodity from which the commodity is being imported. For an example, a person from Indonesia might like to buy a bottle of French wine. In that case, the wine is being imported from France, irrespective of the production of wine in Indonesia (Carlsson, 2012). Therefore, in order to understand the consumer habits and adhere to the tastes and preferences of the consumers, the multinationals must consider the transportation factors, which are cheap. These considerations will help them in determining the return on the investments and the revenue earned by the same.
Moreover, the businesspersons have to travel to the distant lands in order to deal with the international clients. The advancements in the transportation facilities help in making the trips faster and economic at the same time. Shipping and taking a flight is made easier in this era of technological advancements and depending on the requirements of the business. It helps the companies to evolve and make gradual progress in the economic structure. The transportation, therefore, is an important factor that affects the change in the economic structure of the nation or the companies.
The prediction of the latest revolution that would strike the surface of the earth in the coming years is based on the technology of transmitting information (Camagni, 2017). The era of technology has also facilitated the access to information and therefore the biggest revolution is yet to come with the internet where the knowledge flows through a safer and controlled medium. The future of the international technology is being framed by the involvement of the Quantum computing which is based on the quantum mechanism theory. The web is forecasted to go mobile with the people paying more money on the web services will be preferred first on the web. People will be able to share videos, events and information in a media through an array of devices, which can be perceived by the majority of the people by the least expected time.
The technological advancements will help the people in attaining information at the same time and thereby help in transmitting the e-information effectively throughout the process (Bertuglia, Fischer & Preto, 2012). The process is beyond the algorithm that the computer follows and the binary calculations, therefore it will be faster and more accurate in deriving results. The advancements in the communication procedure and the proper transmission of the information, depending on the requirements of the people paying for the information, is an important consideration (Nijkamp & Blaas, 2012).
Therefore, from the above discussion it can be concluded that the communication and the transportation has major impacts on the structure of the economics and thereby influences the change in the business environment. The factors help in bringing modification in the process of the business and helps in undertaking international trade, which helps in determining the economic condition of the company and the nation at large.
References
Batten, D., Casti, J., & Thord, R. (Eds.). (2012). Networks in action: Communication, economics and human knowledge. Springer Science & Business Media.
Bertuglia, C. S., Fischer, M. M., & Preto, G. (Eds.). (2012). Technological change, economic development and space. Springer Science & Business Media.
Camagni, R. (2017). Technological change, uncertainty and innovation networks: towards a dynamic theory of economic space. In Seminal Studies in Regional and Urban Economics (pp. 65-92). Springer, Cham.
Carlsson, B. (Ed.). (2012). Technological systems and economic performance: the case of factory automation (Vol. 5). Springer Science & Business Media.
Cowhey, P. F., & Aronson, J. D. (2012). Transforming global information and communication markets: The political economy of innovation. MIT Press Books, 1.
Foster, J. B., & Wood, E. M. (2017). Capitalism and the information age: The political economy of the global communication revolution. Monthly Review Press.
Garicano, L., & Wu, Y. (2012). Knowledge, communication, and organizational capabilities. Organization science, 23(5), 1382-1397.
Gunasekaran, A., & Ngai, E. W. (2012). The future of operations management: an outlook and analysis. International Journal of Production Economics, 135(2), 687-701.
Leamer, E. E., & Storper, M. (2014). The economic geography of the internet age. In Location of International Business Activities(pp. 63-93). Palgrave Macmillan UK.
Nijkamp, P., & Blaas, E. W. (2012). Impact assessment and evaluation in transportation planning. Springer Science & Business Media.
Pejovich, S. (2012). Economic analysis of institutions and systems(Vol. 33). Springer Science & Business Media.
Pratt, M., Sarmiento, O. L., Montes, F., Ogilvie, D., Marcus, B. H., Perez, L. G., … & Lancet Physical Activity Series Working Group. (2012). The implications of megatrends in information and communication technology and transportation for changes in global physical activity. The Lancet, 380(9838), 282-293.
Saaty, T. L., & Vargas, L. G. (2013). The logic of priorities: applications of business, energy, health and transportation. Springer Science & Business Media.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download