THE RISE OF GLOBAL
CORPORATION
Global corporations are inseparable to the
phenomenon of globalization.
THE RISE OF GLOBAL
CORPORATION
The History of Global Corporations
Colonialism and Imperialism.
Post World War II era where it was
dominated by American Corporations.
The Re-entry of Japanese and European
Corporations back to world market.
The contemporary global corporation is
simultaneously and commonly referred to as
multinational corporation or transnational
corporation.
They are either an international company or
a global company
International companies are importers and
exporters, typically without investment
outside of their home country.
Multinational companies have investment in
other countries, but do not have coordinated
product offerings in each country. They are
more focused on adapting their products and
services to each individual local market.
Global companies have invested in and are
present in many countries. They typically
market their products and services to each
individual local market.
Transnational companies are more complex
organizations which have invested in foreign
operations, have a central corporate facility
but give decision making, research and
development, and marketing powers to each
individual foreign market.
TNC – Transnational Corporation: An enterprise
that engages in activities which add value
(manufacturing, extracting, services,
marketing) in more than one country.
Foreign Direct Investment (FDI) is construed to
be one of the major elements of the global
economic development.
These types of corporations are called under
the generic name of GLOBAL CORPORATIONS.
WHAT CONSTITUTE THE ESSENCE OF THE
PRESENT DAY GLOBAL CORPORATIONS?
The advent and impact of digitalization and
instantaneous global communications.
The structural transformation of global
commerce from producer driven community
to chains to buyer driven.
The increasing role performed through the
global system by financial elements and the
emergence of global financial firm.
BRICS ECONOMIES
Brazil, India, and China
Have become the most dynamic sector of
global corporate growth.
Represented in part by their significant FDI
over the past three decades.
The importance of global corporations in
Brazil, India, and China to the current and
projected global economy is singular
With forty percent of the world population,
BRICS economies represent a primary force in
both global production and consumption.
The BRICS were unaffected by the US and
European Markets in 2007.
CHALLENGE INTRODUCED BY
BRICS TO THE ITS COMPETITORS
In relation to China, some globalist views it as
having connection with the old socialist order
since many of China’s global corporation are
owned and controlled by the state. They are, in
a way financed by the state, and are also, in a
way, “endorsed” by the state to its ready buyers.
The BRICS economies is the new face of the
global corporate reality as their strong domestic
markets and their ability to gain capital from
within their host countries.
NEMS
NEMS – Non-equity modes of production.
Have become an increasingly important form
of global corporation within the emerging
economies.
Represent an increasingly vast network of
relationships in which global production
chains are assembled through
contract manufacturing,
services outsourcing,
contract farming,
franchising,
licensing, and
management contracts.
Externalization for the corporation which gain
access to benefits within global value chains
without investing large amounts of capital.
THE RELEVANCE OF THE CHANGING
REGULATORY ENVIRONMENT TO THE STRUCTURE
AND OPERATION OF GLOBAL CORPORATIONS
Lessened regulation by governments.
The requirement of the so called corporate
social responsibility.
Check and balances provided by NGOs.
Need for regulation of the global financial
market.
THE NORMATIVE CASE: GLOBAL
CORPORATIONS
After World War II, global corporations were
viewed as agents of desired economic
development.
FDIs were in demand throughout the world.
By the end of the 1960’s onward, global
corporations were viewed as gaining their
economic prominence through a variety of
socially destructive means.
Global corporations are viewed as agents of a
system that on balance was resulting from
greater global wealth inequality,
income inequality,
lack of effective worker protection,
environmental degradation,
producing natural cultures of corruption through
corporate collusion,
and in some instances, threatened national
sovereignty.
Global corporations are now very powerful
that they can create a financial crisis if they
want to.
BASIC FEATURES THOUGHT TO
BE BROUGHT ABOUT BY
GLOBAL CORPORATIONS
Global inequality.
The systematic stability and viability of the
global financial system.
It has positive and negative contributions to
the contemporary world.
THANK YOU
