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Importance and similarity of corporate governanceWith the development of information and technology, all they countries are linked together by the internet and other ways. People are not independent in their daily life and work. It can be proved from many aspects. In addition, companies are getting more and more international and multinational corporations are formed in a rapid speed. They are distributed not only in the developed countries but also in the developing countries in every field. With the flow of merchandise, surplus capitals and increasing of economy, the development of multinational corporations is strengthened. With the opening policies of every country which is encouraging international business, the trend of developing multinational corporations can be stopped. At the same time, if the corporations are run well in the global trend, the corporations will gain a lot of benefits which can not be easy to estimate. Therefore, a lot of corporations are trying to manage their business better in the modern global corporate environment. There are a lot of factors needed to be managed so that the whole corporate can be run well, of which governance in the corporations are very important. Moreover, there is a trend that organizations have the similar governance in different countries, in other word, they have similarity in governing organizations. To govern a multinational corporate well, the following aspects should be treated properly. They are the internal controls of the corporate, business risk management and some policies for the staff in the corporation and relevant corporations. The details of these management skills will be discussed in the following sections. Having discussed the trend in the world, this essay will describe how and why they are similar.

The definition of corporate governance and similarity will be illustrated here. Corporate governance refers to the management among the combination of companies, shareholders, and other stakeholders. Corporate governance provides the structure of company’s objectives and the methods which achieve these objectives and monitor performance. Every organization has similar governance in corporate objective which is gaining more competitive advantage in competitors, though they are in different countries. Furthermore, the risk management of corporate governance also has similarity, all of them have willing to reduce risk of investment. Having similar governance is easy to control for organizations, and make the operations smooth, efficient, and can take hedge against to face changeable situation.

Reference
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