Meaning of Global Enterprises
Global enterprises simply refer to companies that perform their business around the globe. These companies basically in different countries & are engaged in international trade. Global enterprises are large in size & have vast business operations.
They deal in a large variety of products & services. Global Enterprises have their branches in different countries across the globe. These branches are controlled by the head branch located in the home country. These companies have advanced technologies & work efficiently.
Global enterprises aim to earn huge profits & foreign currencies of different countries. There is large no. of people who are employed in these companies. At the end of the financial year, the final accounts of different branches across the globe are consolidated together as per usage.
Features of Global Enterprises
Large capital resources
Global enterprises have large amount of capital being invested in their business. It is because they have large amount of available financial resources. These companies have good image & high credibility in the market.
There are a large number of investors who are always willing to invest in these businesses. These companies can easily issue equity shares, bonds & debentures in the market. Financial institutions & international banks also easily provide funds to these companies.
This is one of the important features of Global Enterprises. These companies focus on advanced & best level of technology. Global enterprises always focus on the quality of their products & try to meet all international standards.
They aim to adopt the latest technology as soon as possible available. This will help in achieving the highest efficiency in there operations. It helps in earning high losses & minimises the losses.
Global enterprises have their branches located in different countries around the globe. These have their head branch in their home country. Head office influences the functioning of all branches. It issues rules & policies to be followed by different branches across globe. Whole power is centralised with head offices & controls all functioning of company.
Global enterprises focus working on their R&D centres doing research & development work. These companies invest huge amount & time at their research & development centres. They have a very efficient team working in these centres.
The main task of these centres is to develop & design new products as per market demand. It also redesigns the existing products into the new design to provide new look. All these products are designed according to customer needs & provide better satisfaction.
There are large no. of people working in global enterprises all over the world. These companies provides employment opportunities to large no. of people. Global enterprises pay good remuneration to its employees. It works for the overall welfare of its employees. It helps in improving the economic conditions of country by providing employment.
Improves standards of living
These companies aims at providing better quality products at better prices. Global enterprises have advanced technologies with which they are able to produce high quality products. People are able to use high quality products at cheaper prices & are easily available. This helps in raising their standard of living of peoples.
Promotes international brotherhood
Global enterprises in different countries around the world. In different countries, they adopt that country’s culture & tradition. This helps in promoting cooperation among different countries.
It integrates economies of varies nations with the world economy. This way it promotes international brotherhood & world prosperity and peace.
Improves Balances of payment
These companies enable different countries in improving their balance of payments. It enables the host countries to increase their amount of exports. This way they are able to earn large foreign currencies of different countries. It helps in making the balance of payments favourable.