The search engine, Google was created in 1998. This new company was set up in a garage in Menlo, rented by a friend of the two creators Larry Page, 24, and Sergey Brin, 23. The company comprised of three people initially. It began tasting success exponentially since 2000, when Google became the benchmark in terms of search engine. Google has consistently been innovating. Even today, Google plans to create an online library and the company has signed an agreement with leading universities to digitize 15 million books.
[...] The MNCs show a certain disregard to state rules to take advantage of positive externalities of their business environment, although they remain strongly connected to their country of origin. Limitations Mergers or acquisitions between firms do not pose a problem in economic conditions. Some of the problem areas include social boundaries and cultural practices. Indeed, working and living abroad in a different culture is not the same. So, if a German company merges with an American company, we have two countries with a working model of their own. [...]
[...] However the realities here are of a different nature. Small companies (SME) establish a subsidiary in a neighboring country to have an advantage over individual competitors. E.g. Coca Cola, Apple etc The contemporary development of international trade has been marked by the rise of Transnational Companies. These companies run their productive activity by arbitrating between several sites located in different States. They become the main actors in the DIPP (International Decomposition Process of Production). We can understand that large firms benefit more easily from the contemporary phenomenon of globalization because of their ability to relocate their production. [...]
[...] They therefore adhere to networks of business and are very close to their market. In thirty years, the share of employees working in establishments with more than 500 employees has been halved: one in ten employees lost his job in 2005, against one in five in 1976. Now the majority has been employed in establishments with fewer than 50 employees. This has been especially pronounced during the 70s and 80s. The distribution of staff by size of establishments, however, remains much more stable. [...]
[...] Large companies are stronger than the small face of globalization While large companies represent only a tiny minority of companies, their weight in some areas are considerable. They indulge themselves in activities where the production requires large and costly equipment. Due to their size, they are able to raise capital more easily and to pass the high costs of equipment on mass production. They may also merge with other smaller companies in order to increase their size and significance . [...]
[...] After several economic studies of small and medium-sized businesses, Schumpeter concluded that they offer lower pay, realize a higher growth rate, have a strong practice of rotation of labor, export and innovate differently. According to him, we should therefore focus on SME's instead of large enterprises. II) Small is beautiful SME's play a significant role at the National level in Developed Countries Let us adopt a statistical approach to discuss this segment. In France, for example, which is a developed country; there are only 2,000 companies with more than 500 employees contributing to 2.5 million businesses. [...]
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