Human Resource Management - the role and importance of

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					         HUMAN RESOURCE MANAGEMENT -
          THE ROLE AND IMPORTANCE OF
           MULTINATIONAL COMPANIES


Muscalu Emanoil
Universitatea “Lucian Blaga” din Sibiu, România
Facultatea de Ştiinţe Economice
Stăniţ Alexandra
Universitatea “Lucian Blaga” din Sibiu, România
Facultatea de Ştiinţe Economice


         If one of the factors of growth and economic development
in the contemporary period is "human capital" in the analysis of
human resources correlations between specialization and volume of
information that can materialize evolution of human society,
manifested in the last decades of the twentieth century and the
beginning of the new millennium, outlines the prospect of an
increasingly integrated world, which finds its origins in the
experience accumulated by mankind over the processes and
phenomena         with     economic,     social      and      cultural.
It was thus concluded that the individual is more than a mere
component of productive factors and human resource management
than rigid principles of asset management company, should take
into account a number of features that are beyond economic
calculation. Only taking into account all aspects that define the
human personality, abilities, acnowledge, aspirations, temperament
and character traits, resource management may be able to lead the
precious, the only resource equipped with the ability to know and
overcome their limits.
         Globalization, European companies/multinational, human
development, economic diversity, social, political and cultural-
specific regions or countries are factors that have a major impact
on human resources management. European human resource
management is very complex. No other region in the world
encompassing so many differences in terms of historical, cultural
and linguistic aspects as well as Europe.
         Each country has its own employment system, its laws and
institutions, its own education system and a strong individualized
managerial culture. Human resource management becomes the
main instrument through which companies can provide competitive
advantage in the intensification of globalization. In experts opinion,
the main cause of European companies failure is the lack of
understanding of key differences in human resource management in
different countries. Companies must ensure their competitive
advantage and deliver value added in terms of achieving a single
market share.

Keywords: human resource management, human resources,
multinational companies, human resource globalization

JEL Classification: F23, O15


        1. Introduction

         In the '90s, we witnessed to the human resources concept
enlargement, employee and correlated with openness to the outside
company. The proliferation of communication channels lead to a
simple observation: the companies have realized that the real
resource is the human capital value. Companies are forced to find
profitable and loyal employees with high potential. Information
technology is an intelligent manner to identify each employee's
expectations based on a detailed and specific knowledge of
each. Good human capital management allows not only lower
management costs of personnel, but also increase individual
profitability. The ultimate objective must be the center position of
the employee's business strategy and integration in all the
traditional functions of human resource management.
         Multinational companies have implemented the idea of
making contact with the employee as a personalized contact,
organizations must adapt to each situation created - only in this way
the relationship between employee and employer becomes truly
profitable. Similarly, the demand for human resources management
solutions in particular still comes from multinational companies
who imported the management culture of the groups they belong to.
         Multinationals now play an important role in the economies
of all countries in international economic relations, a topic
becoming increasingly important for governments. Foreign direct
investment, firms can also bring substantial benefits to both
countries of origin and host countries through contributions to the
efficient use of capital, technology and human resources between
countries and can thus play an important role in promoting
economic and social welfare.
         But multinational enterprises, and organizing their
operations beyond the national framework may lead to abuses by
the concentration of economic power and to conflicts with national
policy objectives. Moreover, the complexity of the multinationals
and the difficulty of clear understandings on their diverse
structures, operations and policies sometimes lead to concern.
         Thus, the target is shared by all countries to encourage
positive contributions which multinational firms can achieve
economic and social progress and to minimize or resolve
difficulties which may arise from carrying out their operations.

        2. Human Resources Management

         The term "human resource management" began to be used
in the past fifteen years. Before, they used the term "personnel
management", which became a stand-alone department in 1920 and
was largely concerned with technical aspects of employment,
evaluation, training and motivation courses. In late 1970, U.S.
organizations have begun to be affected by factors such as
globalization and rapid changes in technological level. Under their
influence, firms began to be concerned with strategic planning,
forecasting a change process in business.
         In human resource management strategies are formulated
and implemented in the medium and long term, thus contributing to
human resource managers to key business objectives.
The concept of human resources is not new. Peter Drucker, in his
book "The Practice of Management, attributed management three
functions: to obtain economic performance, leadership and
management operators and managers work. "Man is the only
resource available to man that can be developed," he says, and
"people must think that people ... together managers and workers is
an organization's human resources." Individual, structure, feeling,
thinking, culture, motivations, desires and, in particular, self-
awareness is a big unknown system, which can prevent or,
conversely, the potency of an action, process, activity. By its nature
a social being, man is taught to live and to work collectively as part
of some group that feels more or less attached groups, in turn,
interact with other groups, depending on one and exerting influence
on others. Therefore, the successful initiation can conduct to
various activities in an organization depending on the extent of
motivated and coordinated human factor.
         Human resources constitute the creative, active, and
coordinating element in the work of the organization, influencing
the efficacy critical material, financial and international aspects. It
is necessary to describe people as "resources" to emphasize the
importance and to show that their management requires high levels
of sincere concern for people, care and professionalism.
Emphasizing the role of human resources does not mean, however,
an understatement of other resources.
        3. Multinational companies. Origins and Evolution

         Multinational companies, are the most powerful forces and
play an important role in these actual conditions for the deepening
of globalization pressure, their business taking place in a dynamic,
turbulent space, at certain times or areas in the world’s economy.
         A national or transnational company is a company that
engages in foreign direct investment and owns and controls the
value-added      activities    in    more      than    one    country.
In general, we use "transnational" and "multinational" with the
same meaning. The first term was adopted by the United Nations
Centre for Transnational Corporations in 1974 at the request of
several Latin American countries who wanted to distinguish
between companies domiciled in a Latin American country could
invest in another country, for those who and originate outside the
region. The second term is preferred by developed countries, the
business and academic community.
         Over time, methodological differences have disappeared, so
now both terms designate the same thing. However, there are
differences between the two terms on the level of analysis. For
example, in academia, the term "transnational" is used to designate
"a multinational corporation that pursues a strategy of full
integration and multi-dimensional organization." In another design,
using terms that have the same meaning and believing that it refers
to the same phenomenon, the only difference is that "transnational
company" is a term used after 1980, and "multinational company"
is a term used before 1980.There are academics who argue that
there is one major difference between the two terms.
         Among them is Carl Dassbach giving separate definitions
for two terms. Thus, a multinational company is a company
primarily focused on the different national markets or regions. It is
characterized by a decentralized management (national or regional
units are largely autonomous from the center of the main decision-
making), a variety of production lines (each national or regional
market oriented) and one division of work overlapped super flux
activities as each unit operates independently of the others. On the
other hand, a transnational company is a market-oriented world, or
at least to an external market covering several countries or
regions. The administration is far more centralized than for
multinational company, your main office with a more direct control
over units. Furthermore, a transnational company is moving
towards creating a single enterprise with a single division of labor
by eliminating redundant activities and focus activities in those
countries (regions, markets) that offer the greatest benefits in the
activity.

        To assess the degree and size of multinational companies to
    take into account the following criteria:
    - number and size of foreign subsidiaries or associated
    companies which it owns or controls;
    - number of countries in which they engage in gainful
        activities;
    -    proportion of global assets and revenues or the number of
        employees for foreign subsidiaries;
    - degree of internationalization of the management,
        ownership and high value activities.

            Multinational firm's distinctive features are:
    -       profit organization and coordination of many activities
            beyond national borders;
    -        internalization of external markets for intermediate
            production that arises from these activities.

        No other institution combines the two activities: production
    and trading abroad. A multinational company may be privately
    or publicly, may come from a country or a socialist market
    economy, may be motivated by private or social objectives,
    may have a large network in many countries or a single product
    in a single foreign country, the property can be owned and
    controlled by persons / institutions in one country (Mars,
    Tateng) national and international owned and controlled (Ford,
    Sony, Samsung), or internationally owned and controlled
    (Agfa, Royal Dutch Shell ). Arriving at a stage of maturity,
    multinational companies have taken a number of features:
        - turnover of many multinational excess even GNP of
    developed countries such as Portugal or Greece;
         can get loans on terms more favorable than many
    governments;
         adopt a centralized management and decentralization
    issues are vital to other activities, a strategy called "integrated
    management";
         vitality and dynamism: grow, expand, absorb, multiply,
    continuously expanding their scope of business, technology and
    capital migrate, the activity is diversified;
         combines the diversification benefits of scale;
         a "modular production", standard components are
    assembled into finished products differentiated by the
    characteristics of each target market.
        4. Multinational companies and human resource
        management

         It is widely theorized notion that, in terms of purpose,
business exists to promote human welfare, and yet people are active
participants in this activity as scientists, engineers, managers,
administrators, sales staff and workers. And the work of
multinational firms has contradictory effects on the international
division of labor: improve the human resources at home and on the
perspective of the host country, depending on the nature of the
production process introduced by the company multinational labor
skill level may be lower or higher. Other multinational companies
even create their new specific benefits by recruiting a large number
of unskilled or low skilled workers from one country and
transporting them to engage in another. A multinational firm also
affects international working conditions and wages: firstly, given
that experience large and multinational information they hold on
compensation of employees, labor and personnel management
practices in different parts of the world, a multinational company is
able to implement best practices to stimulate and motivate
employees and increase productivity in all its branches (branches
are usually transferred to the methods adopted in the country of
origin). Secondly, the management of a multinational has a higher
power and flexibility in negotiating with trade unions and
governments work practices, conditions of employment and human
resource development in countries that have branches than
indigenous firms. A third point would be the relationship between
multinationals and host country governments, in many cases,
approaches to labor problems the two countries may be different
methods and laws because they have accepted.
         It is also worth mentioning that the effect it has
multinational activity as promoters of foreign direct investment, the
indirect employment of labor, which depends on the size of the
product's output of foreign affiliates, their ability to source
intermediate goods from local suppliers and how to choose a
technology designed according to characteristics of the subsidiary
and suppliers. Besides these effects on the vertical effects can be
recorded the horizontally ones among local businesses as a result of
competition with multinational subsidiary and global expenses
incurred by the subsidiary's employees.
         The countries multinationals also lead a policy of training
and raising the qualification of human resources, although some are
tempted to pay salaries comparable to local businesses, many
international companies granted a similar level are higher, working
conditions as compared to local standards are much higher, leading
an aggressive recruitment policy, and identified two cases of people
hiring highly qualified and trained personnel or younger and less
experienced to be then "polished" .
         For the home country in this plan, there are four
consequences:
          effects of export incentives, where the subsidiary is
supplying raw materials, intermediate goods, capital, finished
products and services from parent companies or from home,
creating new employment opportunities;
          employment effect for the parent company headquarters,
as the subsidiary grows, innovation will increase, collateral
management and other activities, is generally carried out by the
parent, will generate new jobs;
          employment effect of firms 'support' of business
subsidiaries, is actually an indirect employment (accounting firms,
consulting, engineering, banks, etc..)
         Human resource management becomes the main instrument
through which companies can provide competitive advantage in the
intensification of globalization. The experts, opinions about the
main cause of European companies failure is the lack of
understanding of key differences in human resource management in
different countries. Companies must ensure their competitive
advantage and deliver value added in terms of achieving a single
market shares. One of the most important requirements of the
internationalization of business organizations is the training of
managers in terms of culture, to knowledge, application and
administration of cultural elements, specific country or region in
which the company does. According to Geert Hofstede, HR
practices should reflect the cultural specificity of each country,
companies must recognize that different kinds of people should be
valued using different standards, and exploit the ability to
understand foreigners using their standards. Specific cultural
context of each country exerts a major influence on human resource
practices in that country. In many situations, the rule that is valid in
one     culture     may     not    be    applicable      in    another.
         For example, in Japan, young managers are taught that
overtime work compensated for golf parties that should play with or
participation with customers in a karaoke contest head in a bar, are
not always voluntary activities which they participate. The purpose
of such actions is to develop team spirit, on the one hand, and
understand the needs and mindset of the people in a relaxed, on the
other side. Japanese companies in France have faced resistance
from the employees supported the French when they tried to
implement the spirit bonenkai parties, held on Christmas Eve. In
place of such social events, the French preferred bonuses and
bonuses paid during the Christmas holidays, and being willing to
organize such events at home rather than at work. Such an attitude
can be justified by the behavior of the French individualist.
         American model of management values, performance, free
enterprise and autonomy, are quite difficult to apply in Japan or
European countries like France, Spain, Italy, Belgium or the
countries of Central and Eastern Europe, due to differences between
the culture of these countries and the U.S. U.S. is highlighted by a
strong emphasis on pragmatism and profit maximization,
organizational efficiency and productivity. In the U.S., hiring and
dismissals are made as needed, management by objectives is the
main method of assessing performance, management focuses on the
idea of career mobility of employees at a large number of
organizations, rewards are given based on performance work, and
the relationship between unions and managers is an antagonistic
nature.
         The main values of Japanese culture are equity group,
commitment, personal relations, work discipline, status, conflicts,
and totally different from those promoted by the culture of western
countries like USA, UK, France, where wealth, individualism,
mobility power, authority and conflict resolution are the main
cultural values. Compared to the U.S. human resource management,
and Japan is characterized by long-term commitment to employees,
employee involvement in the management of companies, promoting
and rewarding based on the principle of seniority, and relations
between unions and managers are dominated an attitude geared
towards cooperation.
         According to some experts, the European management is
characterized by a lack of national identity management across
Europe, compared with U.S. and Japanese management
models. Changes in the European area are more complex than in the
U.S. and Japan. Enlargement of the European Union to the south-
eastern Europe, has generate a series of mutations in the
economically, socially and politically field. Another dominant
feature of European management is the need to develop new forms
of work organization and enhance flexibility in business
organizations in order to use the diversity and complexity of
cultural, social, political, economic, to achieve competitive
advantage. The European model of human resource management is
characterized by a high diversity of economic, social, political and
cultural property reflect the size, organizational, national and
international corporate activity. Unlike the American model, is
characterized by a high level of organizational responsibility and
managerial support to employees and unions. Compared with the
U.S., regulations on hiring and firing employees, education and
licensing process to formalize training programs, reward system,
the conclusion and execution of individual contracts of employment
is one of the main factors that define the application of human
resource management in Europe.
         Specific multicultural context of the European continent
produces a number of major differences in the human resource
practices, not only from one country to another, but even in the
same country. For example, in Sweden, their application is used as
a simple administrative tool, while in Britain it is mainly used as a
tool for selecting candidates. Moreover, in Britain, the usual name
of the form of employment is for employers Employer's application
form, while the term is used in academic standard application
form. In Luxembourg, a job interview is a more formal, while in
Germany and the United Kingdom is well structured and the
answers to the questions should be accurate and very clearly stated,
leaving no room for interpretation. In Italy, a job interview is of a
relaxed, free and informal. There are some differences between
European countries in terms of selection criteria. If your skills and
personality in Greece are the main criteria for selecting individuals
in Germany and Britain put an emphasis on technical expertise and
their previous work experience.
         EU enlargement is the premise of increasing demands of
work and living conditions across the continent. Very different
rules on working and living conditions existing in the European
Union for Romanian managers are very serious challenges that will
have to align. Managers from EU are the main promoters of the
concept of European career, career on EU is a direct consequence
of the process of Europeanization. European Career management
becomes an extremely important process, the emergence and
development being favorably influenced the increasing population
mobility in the European Union and multinational companies
expanding operations in Europe.
         The tendency in some companies from European Union
countries is to secure European expertise through employees who
have international experience and exhibit opening.
         Evolution of human resource functions in Europe can be
highlighted by current trends and future human resource
management in Europe, for example:

• upgrading of human resources functions;
• training of human resources managers;
• "personalized" human resources management;
• adaptability and flexibility of human resource functions;
• mobilization of human resources;
• development of computerization and information resources.
                                            ANEXA
                          Tabel 1. FDI inflows in the top
10 host countries in Central and Eastern Europe in 1998 and1999 (million dollars)


               CONTRY                              1998           1999
               ___________________________________________________________________

               Total ECE                             21 149         22 923
               Poland                                  6 365         7 500
               Czech Republic                          2 720         5 108
               Russia                                  2 761         2 861
               Hungary                                2 036          1 944
               Croatia                                   893         1 382
               Romania                                2 031            961
               Bulgaria                                 537            770
               Ukraine                                  743            496
               Lithuania                                926            486
               Latvia                                   357            366

                      (Source: UNCTAD, database FDI/TNC)




  Tabel 2. Geographical sources of FDI inflows in CEE countries in 1999 (percent)

                      Germany                                  18
                      USA                                      16
                      Holland                                  12
                      Others, unspecified                      11
                      Austria                                   7
                      Other UE countrys                        13
                      France                                    6
                      UK                                        6
                      Italy                                     4
                      Cyprus                                    4
                      ECE countrys                              3



                         (Source: UNCTAD, database FDI/TNC)
 Tabel 3. Top multinational companies that have home in CEE countries in order of assets
  held, in 1999 (in millions of USD assets and sales, assets, sales and operations employees
                             are reported only performed abroad)

FMN                                 Country          Industry               Active   Sales   Employes
1. Latvian Shipping Co..            Lithuania        Transport              493      214       1631
2. Hrvatska Elekroprivreda d.d.     Croatia          Utilities              363      0.2       N/A
3. Podravka Group                   Croatia          Food                   286      119       501
4. Gorenje Group                    Slovenia         Appliances             256      642       607
5. Motokov a.s.                     Czech Republic   Trade                  164      260       576
6. Atlantska Plovidba d.d.          Croatia          Transport              152       47       N/A
7. Weed Group                       Croatia          Pharmaceutical         142      334       1616
8. Skoda Plzen Group                Czech Republic   Diversified            139      151       1073
9. Adria Airways d.d.               Slovenia         Transport              129       98       N/A
10.MOL Plc.                         Hungary          Oil and Gas            128      203       628


                                  (Source: UNCTAD/Erasmus University database.)




                Tabel 4. Top 25 countries of origin of FMN with the CEE countries of origin
                             Country                         1998           1999
                             Slovenia                          4              5
                             Croatia                           4              4
                             Hungary                           6              4
                             Czech Republic                    3              3
                             Poland                            3              3
                             Slovakia                          2              2
                             Romania                           1              1
                             Republic of Moldova               1              1
                             Lithuania                         -              1
                             Latvia                            1              1
                             Total                            25             25


                          (Source: studiul UNCTAD asupra celor mai importante FMN din ECE)
                                            Tabel 5.
     Industries operating in the largest 25 firms in CEE multinational (number of firms)

                   Industry                                         1998             1999
                   Transportation                                   5                5
                   Pharmaceutical and chemical                      3                5
                   Petrol and mining                                4                4
                   Food                                             2                2
                   Metallurgical                                    2                2
                   Machines and equipments                          2                2
                   Other                                            3                2
                   Trading                                          3                2
                   Contructions                                     1                1
                   Servicies                                        1                1
                   Total                                            25               25

                       (Source: UNCTAD study on the most important CEE FMN)




                        Tabel 6 Indicators of FDI and international production
                                  (billions of dollars and percentages)

                                        Valoare în miliarde USD              Rata de creştere anuală
                                       1982     1990      1999    1986-    1991-     1996-      1998   1999
                                                                  1990     1995      1999
Incomes ISD                            58       209      865      24.0     20.0      31.9       43.5   27.5
Outcomes ISD                           37       245      800      27.6     15.7      27.0       45.6   16.4
Incomes stock ISD                      594      1 761    4 772    18.2     9.4       16.2       20.1   18.8
Outcomes stock ISD                     567      1 716    4 759    20.5     10.7      14.5       17.6   17.1
Fusions and Procurement                ..       151      720      26.4     23.3      46.9       74.4   35.4
Sales of foreign affiliates            2 462    5 503    13 564   15.8     10.4      11.5       21.6   17.8
Total assets of foreign subsidiaries   1 886    5 706    17 680   18.0     13.7      16.5       21.2   19.8
Exports of foreign affiliates          637      1 165    3 167    13.2     13.9      12.7       13.8   17.9
Employees in foreign affiliates        17 433   23 605   40 536   5.6      5.0       8.3        11.4   11.9
(thousants)

 (Source: UNCTAD, World Investment Report 2000: Foreign Direct Investment and the Challenge of Development,
                                            figura I.13, p. 27.)
               Tabel 7. The 25 largest multinational companies in Central and Eastern Europe, ranked byassets held
                                           (millions of dollars and number of employees)

Nr.                 FMN                         Country                    Industry                   Capital                Sales               Employees
                                                                                                 foreign     total   foreign       total      foreign   total
1     Latvian Shipping Co.              Lithuania              Transport                        399.0      505.0     201.0       214.0       1 631    2 275
2     Podravka Group                    Croatia                Food / Pharmaceutical            285.9      477.1     119.4       390.2       501      6 898
3     Gorenje Group                     Slovenia               Appliances                       256.4      645.9     642.2       1 143.3 607          6 717
4     Motokov a.s.                      Czech Republic         Trade                            163.6      262.5     260.2       349.1       576      1 000
5     Atlantska Plovidba, d.d.          Croatia                Transport                        152.0      167.0     47.0d       47.0        -        528
6     Pliva Group                       Croatia                Pharmaceutics                    142.1      855.1     334.3       463.0       1 616    6 680
7     Skoda Group Plzen                 Czech Republic         Diversified                      139.1      973.4     150.7       1 244.5 1 073        19 830
8     Adria Airways d.d.                Slovenia               Transport                        129.4      143.7     97.7        97.7        -        585
9     MOL Hungarian Oil & Gas Plc.      Hungary                Oil and natural gas              128.3      2 881.6   203.4       2 958.1 628          20 140
10    VSZ a.s. Kosice                   Slovakia               Metallurgical                    72.0       1 445.0   0.2         876.0       58       26 719
11    Petrol, d.d.                      Slovenia               Oil and natural gas              70.6       634.2     112.4       706.0       10       3 349
12    Malev Hungarian Airlines Ltd.     Hungary                Transport                        64.5       148.1     236.5       314.9       48       3 396
13    Matador j.s.c.                    Slovakia               Arts                             51.9       304.9     34.0        203.4       5        3 878
14    KGHM Polska Miedz S.A.            Poland                 Mining                           34.7       1 419.8   694.3       1 047.8 20           19 968
15    TVK Ltd.                          Hungary                Chemical                         33.0       543.0     133.0       401.0       181      6 099
16    Graphisoft                        Hungary                IT                               28.0       50.0      25.0        25.0        188      188
17    Croatia Airlines                  Croatia                Transport                        27.6       211.4     9.8         121.2       40       846
18    Elektrim S.A.                     Poland                 Commerce and various             21.0       1 228.0   42.0        874.0       62       26 475
19    Pilsner Urquell, a.s.             Czech Republic         Food                             20.0       251.0     16.0        253.0       356      2 918
20    Moldova Steel Works               Republic of Moldova Metallurgical                       19.9       335.9     1.0         15.6        5        4 562
21    Budimex Capital Group             Poland                 Construction                     17.8       153.9     55.8d       316.4       644      1 095
22    Petrom SA National Oil Co.        Romania                Oil and natural gas              17.0       3 790.0   128.0       2 700.0 140          88 350
23    Iskraemeco, d.d.                  Slovenia               Electric Cars                    15.0       92.0      21.0        114.0       150      2 300
24    Lifosa j.b.c.                     Lithuania              Chemical                         13.2       55.2      93.1        100.0       -        1 339
25    Krka, d.d.                        Slovenia               Pharmaceutics                    12.5       490.4     82.1        300.3       375      3 253
               (Source: UNCTAD, World Investment Report 2000: Foreign Direct Investment and the Challenge of Development, figura I.15, p. 35.)
                   Tabel 8. The 25 largest multinational companies in developing countries, ranked by assets held
                                           (millions of dollars and number of employees)

Nr.                   FMN                               Country               Industry                    Capital               Sales                Employees
                                                                                                    foreign      total   foreign      total     foreign     total
1     Daewoo Corporation                        Korea Republic        Diversified                  10 532      22 946    7 295      18 802     11 403    14 471
2     Petroleos de Venezuela S.A.               Venezuela             Oil                          9 007       47 148    32 502     34 801     11 849    56 592
3     Jardine Matheson Holdings Limited c       Hong Kong, China      Diversified                  6 652       11 970    7 983      11 522     ..        175 000
4     First Pacific Company Limited             Hong Kong, China      Diversified                  6 295       11 386    7 416      8 308      40 400    51 270
5     Cemex, S.A.                               Mexico                Construction                 5 627       10 231    2 235      3 788      10 690    19 174
6     Hutchison Whampoa, Limited                Hong Kong, China      Diversified                  4 978       15 086    1 899      5 754      17 013    37 100
7     Sappi Limited                             South Africa          Diversified                  3 830       4 953     2 419      3 557      9 492     23 458
8     China State Construction                  China                 Construction                 3 730       7 230     1 530      5 420      5 496     258 195
      Engineering Corporation
9     China National Chemicals                  China                 Diversified                  3 460       5 810     11 240     17 880     0 625     8 905
      Import and Export Corporation
10    LG Electronics Incorporated               Korea Republic        Electronics and electrical   3 158       15 431    5 175      17 640     32 532    80 370
11    YPF Sociedad Anonima                      Argentina             Oil                          3 061       12 761    0 911      6 144      1 908     10 002
12    Petroleo Brasileiro S.A. - Petrobras      Brazil                Oil                          .           34 233    .          27 946     .         41 173
13    Sunkyong Group                            Korea Republic        Diversified                  2 561       24 572    9 960      31 692     2 600     32 169
14    Hyundai Engineering & Construction Co.    Korea Republic        Construction                 .           8 063     .          5 405      .         30 981
15    New World Development Co. Limited         Hong Kong, China      Construction                 2 060       14 030    0 800      2 580      .         14 840
16    Guangdong Investment Limited              Hong Kong, China      Diversified                  1 898       3 053     0 676      0 924      15 080    16 500
17    Citic Pacific Limited                     Hong Kong, China      Diversified                  1 834       8 733     0 912      2 154      8 262     11 800
18    PETRONAS - Petroliam Nasional Berhad      Malaysia              Oil                          .           20 990    .          10 055     .         13 000
19    Shougang Corporation                      China                 Diversified                  1 600       6 640     1 040      4 390      .         218 158
20    Fraser & Neave Limited                    Singapore             Food                         1 578       4 273     1 230      1 912      11 461    13 131
21    Samsung Electronics Co. Limited           Korea Republic        Electronics and electrical   .           16 301    .          13 050     .         57 817
22    Singapore Airlines Limited                Singapore             Transport                    1 546       9 111     3 454      4 727      2 957     13 258
23    Companhia Vale do Rio Doce                Brazil                Transport                    1 509       14 332    3 320      4 744      7 432     42 456
24    Enersis S.A.                              Chile                 Electrical Services          .           14 281    .          0 890      .         14 366
25    Acer Incorporated                         Taiwan                Diversified                  1 376       2 946     3 204      4 217      6 792     12 342

             (Source: UNCTAD, World Investment Report 2000: Foreign Direct Investment and the Challenge of Development, figura I.18, p. 41.)
 Tabel 9. The largest 40 multinational companies in the world, ranked by assets owned (billions of dollars and number of employees)
Nr.              FMN                         Country                    Industry                Capital                        Sales              Employees
                                                                                          Foreign       total        Foreign           total   foreign   total
1     General Electric              U.S.                           Electronics          97.4          304.0        24.5           90.8         111 000   276 000
2     Ford Motor Company            U.S.                           Auto                 72.5          275.4        48.0           153.6        174 105   363 892
3     Royal Dutch/Shell Groupc      Netherlands / United Kingdom   Oil                  70.0          115.0        69.0           128.0        65 000    105 000
4     General Motors                U.S.                           Auto                 0.0           228.9        51.0           178.2        ...       608 000
5     Exxon Corporation             U.S.                           Oil                  54.6          96.1         104.8          120.3        ...       80 000
6     Toyota                        Japan                          Auto                 41.8          105.0        50.4           88.5         ...       159 035
7     IBM                           U.S.                           Computers            39.9          81.5         48.9           78.5         134 815   269 465
8     Volkswagen Group              Germany                        Auto                 ...           57.0         42.7           65.0         133 906   279 892
9     Nestlé SA                     Switzerland                    Food                 31.6          37.7         47.6           48.3         219 442   225 808
10    Daimler-Benz AG *             Germany                        Auto                 30.9          76.2         46.1           69.0         74 802    300 068
11    Mobil Corporation             U.S.                           Oil                  30.4          43.6         36.8           64.3         22 200    42 700
12    FIAT Spa                      Italy                          Auto                 30.0          69.1         20.2           50.6         94 877    242 322
13    Hoechst AG                    Germany                        Chemical             29.0          34.0         24.3           30.0         ...       137 374
14    Asea Brown Boveri (ABB)       Switzerland                    Electrical           ...           29.8         30.4           31.3         200 574   213 057
15    Bayer AG                      Germany                        Chemical             ...           30.3         ...            32.0         ...       144 600
16    Elf Aquitaine SA              France                         Petro                26.7          42.0         25.6           42.3         40500     83 700
17    Nissan Motor Co., Ltd.        Japan                          Auto                 26.5          57.6         27.8           49.7         ...       137 201
18    Unileverd                     Netherlands / United Kingdom   Food                 25.6          30.8         44.8           46.4         262 840   269 315
19    Siemens AG                    Germany                        Electronics          25.6          67.1         40.0           60.6         201 141   386 000
20    Roche Holding AG              Switzerland                    Pharmaceutics        ...           37.6         12.7           12.9         41 832    51 643
21    Sony Corporation              Japan                          Electronics          ...           48.2         40.3           51.1         ...       173 000
22    Mitsubishi Corporation        Japan                          Diversified          21.9          67.1         41.5           120.4        ...       8 401
23    Seagram Company               Canada                         Feeders              21.8          22.2         9.4            9.7          ...       31 000
24    Honda Motor Co., Ltd.         Japan                          Auto                 21.5          36.5         31.5           45.4         ...       109 400
25    BMW AG                        Germany                        Auto                 20.3          31.8         26.4           35.9         52 149    117 624
26    Alcatel Alsthom Cie           France                         Electronics          20.3          41.9         25.9           31.0         ...       189 549
27    Philips Electronics N.V,      Netherlands                    Electronics          20.1          25.5         33.0           33.5         206 236   252 268
28    News Corporation              Australia                      Media                20.0          30.7         9.5            10.7         ...       28 220
29    Philip Morris                 U.S.                           Feeders              19.4          55.9         32.1           56.1         ...       152 000
30    British Petroleum (BP) *      United Kingdom                 Oil                  19.2          32.6         36.5           71.3         37 600    55 650
31    Hewlett-Packard               U.S.                           Electronics          18.5          31.7         23.8           42.9         ...       121 900
32    Total SA                      France                         Oil                  ...           25.2         23.4           31.9         ...       54 391
33    Renault SA                    France                         Auto                 18.3          34.9         18.5           35.6         45 860    141 315
34    Cable and Wireless Plc        United Kingdom                 Telecommunications   ...           21.6         7.8            11.5         33 740    46 550
35    Mitsui & Co., Ltd.            Japan                          Diversified          17.9          55.5         52.3           132.6        ...       10 994
36    Rhone-Poulenc SA              France                         Chemical             17.8          27.5         11.5           15.0         ...       68 377
37    Viag AG                       Germany                        Diversified          17.4          32.7         15.9           27.6         ...       95 561
38    BASF AG                       Germany                        Chemical             ...           26.8         23.9           32.2         ...       104 979
39    Itochu Corporation            Japan                          Trade                16.7          56.8         48.7           117.7        2 600     8 878
40    Nissho Iwai Corporation       Japan                          Trade                16.6          40.4         32.3           75.5         2 068     6 398
(Source: UNCTAD, World Investment Report 2000: Foreign Direct Investment and the Challenge of Development, figura I.19, p. 43.)
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