Question

Networked enterprises and globalization have enabled a new business model called 'business-without-boundaries.' Which of the following statements describes this business model?

1) Companies no longer have all of their employees in one location
2) It is called off-shoring and companies contract with firms in other countries to do such business processes as human resources, payroll, and accounting
3) Companies are under a great deal of scrutiny to manage costs and generate revenue so they contract with foreign firms to do various business processes at a lower cost to the company
4) All of the above statements describe this model

Answer 1

The business-without-boundaries model refers to a global business operation without regard to national borders, where multinational corporations control resources and influence government policies to operate in favor of their growth and expansion.

Step-by-step explanation:

The business-without-boundaries model encapsulates a new paradigm in global commerce, driven by the forces of globalization and advancements in communications and information technology. This business model espouses the operation of companies without the traditional constraints of national borders, allowing multinational corporations (MNCs) to control assets, sales, production, and employment across multiple countries. It is characterized by a substantial proportion of capital amassed from diverse nations, the concentration of wealth in core nations and affluent individuals, and businesses that conduct operations universally.

Additionally, governmental decisions are now influenced on a global scale, with significant events and developments such as the formation of the WTO and regional trading blocks offering new opportunities to MNCs. As the world becomes more economically integrated and competitive, businesses have adapted by expanding internationally and lobbying for favorable operating conditions worldwide.