Multinational corporations and Financial markets
Vasily Makarevich Learning goals I will be able to describe multi-national corporations and evaluate theircharacteristics. I will be able to identify strategies of growth for the private-sectormultinational corporations. I will be able to describe financial markets and their impact on theeconomy. I will be able to describe the impact of MNCs on the Canadian andglobal economy. multi-national corporations
Multinational corporation is a business with any kind of subsidiary in one or more foreign countries. They are also known as a transnational or international corporations. Almost all of the largest multinational firms are American, Japanese, or West European. Proponents of such enterprises claim that they create employment and wealth, and improve technology in countries that favour such development. Critics, however, point out their political influence, exploitation of developing nations, and loss of jobs that results in the corporations' host countries. Such corporations have worldwide influence. First video https://www.youtube.com/watch?v=FCojpFwWuG0 What multinational corporations do you know?
#1 ________________________ #2 ________________________ #3 ________________________ #4 ________________________ #5 ________________________ What multinational corporations do you know? growth of multinational corporations
In general, MNCs tend to split into two very distinct groups: small MNCs thatoperate in less than three countries, and very large that operate in more than 80 countries. Large corporations represent less than 25% of overall quantity. However, they account forthe most significant economic activity undertaken by MNCs. Developing markets are great new opportunities for expansion. New consumers, cheaplabour, much less regulations create a great environment for the fast growth. Two ways of expanding: Expand to the countries with the similar cultural-geographic conditions. If the quality of theirproduct is competitive, they usually succeed, because of the similar business conditions. When they are grow to a larger scale they do not have a choice, but to expand into moredistinct and riskier markets. In order to protect their investments they usually seek forgovernment guarantees. Discussion Question Is is fair to the citizens that MNCs negotiate with the Governments thattend to not always consider the necessitates of local population? Financial Market Global financial market along with the MNCs and advancinginternational trade is a significant force that helps the economy tointegrate throughout the world. Its a network of 100 of the worlds banks and brokerages linked bycomputer programs. This network provides traders with theopportunity to buy or sell foreign currencies, governmental andcorporate bonds and, finally, stocks. Traders usually make money by charging their clients for the service. Bloomberg is the most famous one. ! Knowledge Check What technical tools do traders use to earn money?
What helps them to make right guesses? In what ways do traders earn money? the impact of MNCs on the Canadian economy
Positive effects: Heavily invest in research and development Attract foreign direct investment Make consumer goods better Negative effects: Hurt small businesses Loss of local jobs due to outsourcing. Increased political influence though lobbying groups. Discussion question You are a part of the initiave group in the province of Newfoundland.You have an offer from one of the MNC that guaranties the creation of25,000 jobs in return to the 19 years tax holidays. Would you accept thisoffer? Or you will decline it? Give various thoughtful arguments. the impact of MNCs on the global economy
Multinational corporations hold the most important trade transactionsin the modern economy. They have become an important pole ofpower for economic world. They revenues are huge (up $200 billions annually), they have anenormous lobby on the Governments and they influence the life ofordinary people. MNCs do not give an opportunity to compete for any new marketparticipant. 80% from the international trade are unfurled betweenUSA., EU and Japan companies. Learning goals I am able to describe multi-national corporations and evaluate their characteristics. I am able to identify strategies of growth for the private- sector multinational corporations. I am able to describe financial markets and their impact on the economy. I am able to describe the impact of MNCs on the Canadian and global economy. Handout Works Cited