INTERNATIONAL RELATIONS
In Multinational Enterprise and Economic Analysis, R.E. Caves analyzes the world of international relationships and how these relationships and business shape each other. Modern businesses stand in the middle between following government policies and developing those policies. The same can be said for public perception. The effective business reacts to and shapes public perception. This becomes more important when looking at multinational businesses. Perceptions, policies, and regulations around the world all intertwine effecting businesses. Those who have a presence in more than one environment can draw on that experience to take maximum advantage of their power.Multinational enterprises are joining together to transform the latter part of the twentieth century into a trade and business network such as has never existed at any other time in history. Factors such as the Asia-Pacific Economic Cooperation forum (APEC) and the North American Free Trade Agreement (NAFTA) have joined the world together in way that it has never been joined before. Caves points out that these factors and the transformations occurring are the result of a strategic effort by multinational enterprises to shape governmental policy
Caves stresses that multinational enterprises use communication and technology to shape policies and perceptions as a means to an end, not as an end in itself. Caves stresses that power has shifted from one type of global competitor to another, as has the factors which shape international relationships. A business' influence in the world marketplace is directly associated with its ability to accept and incorporate new technologies and to take hold of the reins to act effectively and efficiently in shaping international relations. Today's businesses are now judged by their influence. This view is a valuable one indeed because although it shows only a small picture, that small picture is part of the whole. Multinational businesses have tremendous power in impacting such aspects of our lives as governmental regulation and policy. One tremendously important factor in the multinational business world is technology. With the effective use of technology, almost any enterprise can become "multinational". Instead of being confined to small ge!ographic areas, a business with a little creativity and twenty or thirty dollars a month can create a page on the world wide web which has the potential to compete side by side with advertising efforts by multi-million dollar corporations. In today's economic environment communication is critical in allowing a business to deal with the restructuring of national and international economies, in preventing market saturation, and in allowing a business to deal with their competitors more effectively. Information access is more critical than ever before to the global economy and to international relationships. By reducing or limiting trade barriers, this agreement has bolstered business activity between the United States and Latin American countries. Their determination and drive will no doubt carry them, and us, well into the twentieth-first century. It is that consumption which keeps the country on the cutting edge and allows it to stay abreast of wealthier and more influential countries.
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