multinational corporations20111 by cy3MhAF

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									                  Globalization
• broadest sense describes the growing economic
  and cultural transfers that occur between nations
  – (access to the world-wide web, the opening of
  another McDonald’s or another free trade
  treaty)
• narrow sense, is used to refer to the increased
  international traffic of goods and services, as well
  as the economic policies of trade liberalization
• Our Shrinking World (Transportation)
Globalization could involved all these things
First
introduced
1982 –
commercial
internet late
1980s early
1990’s
history
Countries with the Highest Number of W
orld Languages Critically Endangered
history
history
FREE TRADE AGREEMENTS


ASEAN Free Trade Area (AFTA)
Asia-Pacific Trade Agreement (APTA)
Central American Integration System (SICA)
Central European Free Trade Agreement (CEFTA)
Common Market for Eastern and Southern Africa (COMESA)
G-3 Free Trade Agreement
Greater Arab Free Trade Area (GAFTA)
Gulf Cooperation Council (GCC)
North American Free Trade Agreement (NAFTA)
Pacific accord
South Asia Free Trade Agreement (SAFTA)
Southern African Development Community
Southern Common Market (MERCOSUR)
Trans-Pacific Strategic Economic Partnership (TPP)
Exploitation
     Multinational (MNCs)&
Transnational Corporations (TNCs)
    GLOBAL 500 COMPANIES - QUIZ
1. What company headed the Global 500 list in
   2010?




 Revenue $421,849,000,000
 Profits $14,389,000,000
    GLOBAL 500 COMPANIES - QUIZ
2. What are the next top four companies on
  the list?
   GLOBAL 500 COMPANIES - QUIZ
3. What country had the most companies on
  the Global 500 list? How many companies
  did this country have?

   133 down
   from139
   since 2010
    GLOBAL 500 COMPANIES - QUIZ
4. What are the next top four countries with
  the greatest number of Global 500
  companies?




68 down      61 up        35          34
from 71      from 46      down        down
2010         2010         from 39     from 37
                          2010        2010
   GLOBAL 500 COMPANIES - QUIZ
5. How may Global 500 companies does
  Canada and India have?




      11
                              8
     GLOBAL 500 COMPANIES - QUIZ
 6. What company had the largest profit?




32,843,000,000 (2011)
    GLOBAL 500 COMPANIES - QUIZ
7. What is the name of the largest Canadian
  Company on the list? Where did this
  company rank?




Ranked #240 down from 208 in
2010 - $36,534,000,000
     GLOBAL 500 COMPANIES - QUIZ
8. Name Canada’s other Global 500 companies.
    2. Royal Bank of Canada (262)
    3. Suncor Energy (268)
    4. Power Corp. of Canada (299)
    5. George Weston (Food) (310)
    6. Toronto-Dominion Bank (310)              Canada
    7. Magna International (automotive) (401)
    8. Sun-Life Financial (406)
    9. Onex (investment firm) (412)
    10. Bank of Nova Scotia (425)
    11. Research in Motion (490)
     GLOBAL 500 COMPANIES - QUIZ
9. Estimate the number of Global 500 companies
   that have their head offices in
                     2010            2011
The Core:          415 (83%)       307 (81%)

Semi Periphery:     85 ( 17%)        93 (19%)


Periphery:            0 (0%)          0 (0%)


      Cities
      GLOBAL 500 COMPANIES - QUIZ
10. How many Fortune Global 500 companies
  are run by women



                  12 (3%)
Women CEOs
                 Table 1: Top 10 Global 500 Countries - 2005

Rank     Company                     Focus            Country         Revenu (US$
                                                                      millions)
  1      Walmart                     Retail           United States         287,989.0

  2      BP                          Oil & Gas        United               285,059.0
                                                      Kingdom
  3      Exxon Mobile                Oil & Gas        United States        270,772.0

  4      Royal Dutch Shell           Oil & Gas        Netherlands          268,690.0
         Group
  5      GM                          Automotive       United States        193,517.0

  6      DaimierChrysler             Automotive       United States        176,687.5

  7      Toyota Motor                Automotive       Japan                172,616.3

  8      Ford Motor                  Auotmotive       United States        172,233.0

  9      General Electric            Diversified      United States        152,866.0
                                     Financials
  10     Total                       Oil&Gas          France               152,609.5


* Data from Forbes Global 500 list 2005
              Table 2: Top 10 Global 500 Countries - 2010

Rank    Company                      Focus           Country         Revenue (US $
                                                                     millions)
 1      Walmart                      Retail          United Sates          408,214.0

 2      Royal Dutch Shell            Oil & Gas       Netherlands          285,129.0

 3      Exxon Mobile                 Oil & Gas       United States        284,650.0

 4      British Petroleum (BP)       Oil & Gas       United               246,138.0
                                                     Kingdom
 5      Toyota Motor                 Automotive      Japan                  204,106

 6      Japan Post Holdings          Mail             Japan                 202,196
                                     Delivery/Banking
                                     and Insurance
 7      Sinopec                      Oil & Gas        China                 187,518

 8      State Grid                   Energy          China                  184,496

 9      AXA                          Insurance and   France                 175,257
                                           m
                                     Invest ents
 10     China National               Oil &Gas        China                  165,496
        Petroleum
                          al
       Data from Forbes Glob 500 list 2010
                 Table 3: Top 10 Global 500 Countries Revenues Compared to GDP of Select Countries

Company             Company Revenues          Country (GDP           Country
                    (US $millions)            rank in world)         GDP (US $
                                                                     millions)
Walmart                            408,214 Turkey (19th)                  402,709.9

Royal Dutch                        285,129 Denmark (28th)                275,237.0
Shell
Exxon Mobile                       284,650 Denmark (28th)                275,237.0

British                            246,138 Greece (30nd)                 244,951.4
Petroleum (BP)
Toyota Motor                       204,106 Thailand (35th)               206,247.0

Japan Post                         202,196 Portugal (36th)               192,571.9
Holdings
Sinopec                            187,518 Hong Kong (37th)              189,798.1

State Grid                         184,496 Hong Kong (37rd)              189,798.1
                                Over 2 Trillion
                   Total        Dollars
AXA                                175,257 Venezuela (38rd)              181,861.8
Countries With Low GDP - 2010
 Country       Continent       GDP ($US 2009)
                                                Total
 Malawi        Africa          13 billion
 El Salvador   South America   43 billion       315
                                                Billion
 Laos          Africa          15 billion
 Haiti         North America   11 billion
 Chad          Africa          17 billion
 Afghanistan   Asia            27 billion
 Zambia        Africa          20 billion
 Ethiopia      Africa          86 billion
 Croatia       Europe          78 billion
 Zimbabwe      Asia            5 billion
Countries With Low GDP - 2010




                                      Croatia




               Haiti
                                                        Laos
 El Salvador
                           Chad           Afghanistan
                                           Ethiopia

                       Zimbabwe
                                        Malawi
                                  Zambia
    Issues of Growth of MNC (TNCs)
• Growing power of MNCs
• Global expansion of global trade
• Protests against MNCs(TNCs) that operate
  sweatshops to produce clothing shoes and other
  goods in developing countries
• Anti-globalization protests in North America and
  Europe made on franchieses of companies like
  McDonalds and Starbucks
         Benefits of of MNC (TNCs)
• Provides consumers with ever-widening range of
  products and services @ affordable prices
• Overall increase in world economic growth that will
  make everyone wealthier by providing more jobs
  and greater economic production
• Stimulus for the economic development of
  developing nations
• Faster more equitable sharing of the most recent
  technological breakthroughs
         Criticisms of of MNC (TNCs)
• Loss of local cultural identities as products from Japan,
  US and Europe become commonly used
• Corporations are becoming so large - not clear whos laws
  apply when a company’s operations extend far beyond
  the borders of any one country
• Old Core nations become richer - most of the best jobs
  and profits go to Core --> rest will get low paying jobs,
  provide markets & suffer possible environmental damage
• Economic uncertainty --> MNCs shop around for best
  places in which to do business (play 1 country against
  another in search for cheapest labour or weakest
  environmental standards

								
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