Explaination of the relationship between globalization as an economic, technological and political process and the growth of the multinational enterprise in the context of critical evaluation of Whitley’s National Business Systems theory

Great discoveries started the era of highly increasing trade and, in fact, the era of globalization. The second stage of globalization was after Second World War. The economic liberalization was one of the bases for raise of multinational companies. Today multinational companies account for more than two-thirds of world trade. The process of global production has place. The notation, where the product was made now is just marking the place where product was completed. These processes have economical reasons, f. ex.: cost of labor, availability of skilled and equipped stuff, tariffs, cost of raw materials, level of technology required to build planned product, stability of economies of the country the MNC (multi national companies) are going to invest in, infrastructures in such countries, taxation levels, law transparency, political stability, political maturity and more. According to Whitley the most important factor determining each national business system is path dependence defined as the dependence of economic outcomes on the path of previous outcomes. Future is the variable of today and –mainly- of the historical events. Whitley states that emerged in twentieth century business systems differs in forms of organization and control, types of dominant firms, relationships between customers and suppliers and work systems. Despite the growing role of globalization, national business systems seem not to be flexible to its influence. Finally, countries seem to specify in their business systems.