TRANSNATIONAL CORPORATIONS

2

TERRITORY POPULATION ECONOMY(GDP- Gross Domestic Product)

ARMED FORCES

BIGGEST RUSSIA17 mln. square km

CHINA1.34 billion

UNITED STATES$14.25 trillion

CHINA2.5 million men

SMALLEST VATICAN0.3square km

VATICAN826

NAURU$60 million

VATICAN107 Swiss guards

Some of the 193 states…

TNC’s control over 70% of global trade Over 50% of TNC’s based in United

States, Japan, France, Germany, and Britain.

95% of all TNC’s are found in the Developed World.

Influence of TNC’s

TNC’s control key parts of the world economy. Control most of the world’s energy, resources, and manufacturing sectors.

Even food development is controlled by TNC’s.

85% of grain production controlled by 6 companies.

http://www.youtube.com/watch?v=Wih52Z1iiNA

Influence of TNC’s

Important for countries to keep TNC’s. Provides jobs, investment, and resources.

Governments use strategies like low taxes, selling resources at low prices, and subsidizing industry to keep TNC’s.

TRANSNATIONAL CORPORATIONS (TNCs)

The first in history was established in 1600 – British East India Company

There are 63,000 transnational corporations worldwide, with 690,000 foreign affiliates

51 of the world's top 100 economies are corporationsThree quarters of all transnational corporations are

based in North America, Western Europe and JapanNinety-nine of the 100 largest transnational

corporations are from the industrialized countriesRoyal Dutch Shell's revenues are greater than

Venezuela's Gross Domestic Product. Using this measurement, WalMart is bigger than Indonesia. General Motors is roughly the same size as Ireland, New Zealand and Hungary combined

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2. FUTURING I:INTRO TO ACCELERATING CHANGE

© 2005 Accelerating.org

Acceleration Quiz

Q: Of the 100 top economies in the world, how many are multinational corporations and how many are nation states?

© 2005 Accelerating.org

Acceleration Quiz

Q: Of the 100 top economies in the world, how many are multinational corporations and how many are nation states?

51 MNC’s and 49 Nations.

© 2005 Accelerating.org

Acceleration Quiz

Q: Disney and Sony (respectively) produce and launch one new product every _________?

© 2005 Accelerating.org

Acceleration Quiz

Q: Disney and Sony (respectively) produce and launch one new product every _________?

Once every three minutes for Disney.Once every twenty minutes for Sony.

© 2005 Accelerating.org

Acceleration Quiz

Q: How much of Hewlett Packard’s revenue comes from products launched in the last year?

© 2005 Accelerating.org

Acceleration Quiz

Q: How much of Hewlett Packard’s revenue comes from products launched in the last year?

70%

Elizabeth Debold, What is Enlightenment?, March-May 2005

© 2005 Accelerating.org

Acceleration Quiz

Q: How many of the lowest net-worth Americans would it take to approximate Bill Gate’s net worth?

© 2005 Accelerating.org

Acceleration Quiz

Q: How many of the lowest net-worth Americans would it take to approximate Bill Gate’s net worth?

Roughly 110 million Americans in 1997, when his net worth was $40 billion. At $30 billion presently (2005), Mr. Gates ranks roughly as the 60th largest country (of 280) and the 55th largest business. When MSFT went public in 1986, Bill was worth $230 million.

NYU economist Edward Wolff, Top Heavy, 2002

Five Reasons to Pursue International Business 1. Expanded profit potential 2. More customers 3. More capital 4. Lower cost suppliers 5. Lower costs of labor

Multinational Corporation (MNC) A business with extensive foreign operations in more

than one county. Transnational Corporation

A MNC that operates worldwide on a borderless basis.

“Fortune’s” Top 10 Multinational Corporations

1. Wal-Mart Stores 6. DaimlerChrysler2. BP 7. Toyota Motor 3. Exxon Mobil 8. General

Electric 4. Royal Dutch Shell Group 9. Total 5. General Motors 10. Chevron

MULTINATIONAL ORGANIZATIONS

MNC Issues

MULTINATIONAL ORGANIZATIONS

MNC Issues Protectionism

A call for tariffs and special treatment to protect domestic firms from foreign competition.

Corruption Illegal practices to further one’s business

interests.

Transparency International gives these countries its poorest corruption scores:

• Indonesia • Nigeria • Tajikistan • Bangladesh • Haiti • Paraguay

• Myanmar

MULTINATIONAL ORGANIZATIONS

MNC Issues

Sweatshops Employ workers at very low wages, for long hours, and

in poor working conditions.

Child labor The full-time employment of children for work

otherwise done by adults.

Sustainable Development Development that meets the needs of the present

without hurting future generations.

Marketization: spread of the market Corporate capitalization as a way of running the

economy Reshapes government affairs Begins as a way of using dependence eventually

to control

95% of all TNC’s are in the Triad (developed world)

Profits along with cheap food and consumer goods go to the developed world

-leads to control over the food resources and most resource development in the developing world