Question

Which of the following statements about the impact of globalization on corporate governance are correct?

1. Globalization necessitates strong corporate governance to attract foreign investment.
2. Adherence to international regulations is a key aspect of global business that corporate governance addresses.
3. E-governance is difficult to implement in a globalized business environment.
4. Companies operating globally can achieve success without strong corporate governance.

• A. 1, 2
• B. 1 മാത്രം
• C. 2, 4
• D. 3, 4

Answer 1

Answer:

A. 1, 2

The increasing interconnectedness of economies through globalization has profound implications for how businesses are managed and governed. For organizations operating in a global market, attracting foreign investors and clients requires not only competitive products and services but also a demonstrable commitment to strong corporate governance. This includes adhering to international standards of transparency, ethical conduct, and regulatory compliance. E-governance systems are indispensable in this regard, providing the technological backbone to manage complex, cross-border operations, ensure compliance with diverse legal frameworks, and communicate effectively with a global audience. Without robust corporate governance, underpinned by effective e-governance, companies face significant challenges in building trust, accessing capital, and ultimately succeeding in the competitive international arena.