CHAPTER IVGlobal Factors Driving Business TESOLInstructional Objectives:-Discuss the functions of multinational companies as vital elements in the global system.-Describe the growing importance of quality information for controlling and directing the global system and its corporate units towards specific goals.-Explain the role of business communications in the global economic system.A. The Human Expansion of Economic and Social Interactions.Point out to learners that today, more than ever before, we live in a world that is globally integrated.This phenomenon creates the need for more communications. Therefore, TESOL Business should continue to grow in line with the emerging needs of the global community.The long history of mankind shows the human need for social interacttion as a means for cooperation to fight against dangers while developing ways and instruments for survival.Early families, clans, tribes, kingdoms, cities, and nations developed their own non-verbal, spoken, and eventually written codes for understanding in different regions or cultural settings. Language developed to help increase economic production and ensure property rights.Every historical period has been distinguished by the use of common ways of communication to facilitate the exchange of goods and services. Each period also developed specific forms of social organization and technology. The English language, multinational organizations (for profit and non- profit) and the developments in transportation and telecommunications technologies expresses the vital elements of the current global business environment.B. Multinational Corporations as Drivers of Business TESOLA multinational company has subsidiaries, operations or investments in more than two countries. Companies of this type may gain closer and easier access to cheaper resources and more international clients.A corporation is a legal entity, distinct and separate from the individuals who create and operate it.Public corporations trade their stocks in public markets. Private corporations keep their stocks in a small, closed group of investors. Public corporations have the distinct advantage and ability to raise large amounts of capital through the sales of stocks to meet growing needs. (Warren, Reeve & Feese, 1999)Corporations operate through systems with elements of both organizational and managerial functions. The principal organizational functions are: human resources, information, production, marketing, and finance. Each organizational function must also have its elements of managerial functions for: planning, organizing, directing and controlling. (Mastretta, 1982).Large corporations, with their systematic organization, have the greatest global impact on the production and distribution of goods and services.Large corporations such as many multinationals generate the greatest flows of communication and information processing that requires the use of the English language in the global context.The term multinational corporation is applied to any organization that develops international profit seeking activities, operating in more than one country. Multinationals share internal information to meet their needs and produce external information for outside users. Both types of communications are important to different strategies and operational activities. (Brighman, 1999).The growth of multinationals and their information needs make necessary larger flows of information through a common language code that is convenient for most multinationals. The power of English is almost unchallenged as the most common language in both the non-business as in the business world. (Carter, 2001)Therefore, teaching business English has become a global need. This demand has become evident in the school systems. In some countries, students in high school are required to learn business English subjects such as accounting, marketing, hospitality management, tourism, shipping, merchandizing, and real estate businesses among others. Moreover, the direct presence of multinational organizations in many countries constitutes another important source of demand for business English in support of their operations. English skills remain an imperative for functions such as general management, controllership, auditing, logistics, information technology and international business regardless of the industry or economic sector or form of business organization.Multinationals are becoming aware of the need to address local needs and culture both with internal as well as external business communications strategies. Using local employees that understand the culture might be an effective way of reaching out to the local population, but communication of this information in a recognizable code by people in the home office would still need to be done in a lingua franca such as English in order for the corporate decision makers to be able to take advantages of the potential be