Growth of Mittal Steel
Edwin Romero
Ashford University BUS616 International Business
Dr. Johnny Vanneste
November 10, 2014
Abstract
In today’s world for a company to be able to grow and compete on a level higher than its competitor’s it must eventually seek to move outward into new markets. This growth will not only assist the company in its need for expansion but it can also be beneficial to the local communities the organization moves into by providing jobs and other economical means of growth. Mittal Steel was one of such companies that decided it was time to venture out and become more global in their efforts for expansion and growth. Some of their methods were done with very good timing and some were filled with controversy. Mittal’s ability to grow itself from a small family owned steel business into a global steel power encompasses what it is to go global. This paper will seek to analyze the reasons behind Mittal Steel decision to go global as well as the implications that came with their methods of globalization. …show more content…
These benefits can include such things such as resource transfer effects. Foreign direct investment can make a positive contribution to a host economy by supplying capital, technology, and management resources that would otherwise not be available and thus boost that country’s economic growth rate (Hill, 2011). Employment effects’ is another benefit which assisted foreign direct investments to bring jobs to a host country that would otherwise not be created there. The effects of foreign direct investment on employment are both direct and indirect. Direct effects arise when a foreign multinational enterprise employs a number of host-country citizens. Indirect effects arise when jobs are created in local suppliers as a result of the investment and when jobs are created because of increased local spending by employees of the multinational enterprise (Hill,
Edwin Romero
Ashford University BUS616 International Business
Dr. Johnny Vanneste
November 10, 2014
Abstract
In today’s world for a company to be able to grow and compete on a level higher than its competitor’s it must eventually seek to move outward into new markets. This growth will not only assist the company in its need for expansion but it can also be beneficial to the local communities the organization moves into by providing jobs and other economical means of growth. Mittal Steel was one of such companies that decided it was time to venture out and become more global in their efforts for expansion and growth. Some of their methods were done with very good timing and some were filled with controversy. Mittal’s ability to grow itself from a small family owned steel business into a global steel power encompasses what it is to go global. This paper will seek to analyze the reasons behind Mittal Steel decision to go global as well as the implications that came with their methods of globalization. …show more content…
These benefits can include such things such as resource transfer effects. Foreign direct investment can make a positive contribution to a host economy by supplying capital, technology, and management resources that would otherwise not be available and thus boost that country’s economic growth rate (Hill, 2011). Employment effects’ is another benefit which assisted foreign direct investments to bring jobs to a host country that would otherwise not be created there. The effects of foreign direct investment on employment are both direct and indirect. Direct effects arise when a foreign multinational enterprise employs a number of host-country citizens. Indirect effects arise when jobs are created in local suppliers as a result of the investment and when jobs are created because of increased local spending by employees of the multinational enterprise (Hill,