Robert Uberman, Multinational Corporations (MNCs)

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Robert Uberman, Multinational Corporations (MNCs)

Definition of Multinational Corporations Definition of Multinational Corporations and scope of the class (1)and scope of the class (1)

• Why MNCs are worth studying?– You definitely are their customers– You may become investors– You may become employees– You may become suppliers– MNCs inluence global economy &

politics strongly

Robert Uberman, Multinational Corporations (MNCs)

Definition of Multinational Corporations Definition of Multinational Corporations and scope of the class (and scope of the class (22))

• Definition criterion - size• Qualitative criteria:

– Sales structure– Employment structure– Ownership structure– Structure of a value added created

Robert Uberman, Multinational Corporations (MNCs)

Multinational Corporations Multinational Corporations - - statistical statistical overview overview (1)(1)

• Number of MNCs– 82 thousands MNCs with 810 thousands affiliates

(UNCTAD, 09)– Revenues (annual) = 32 960 billions USD (UNCTAD, 10)

• Variables representing MNCs’ role in the global economy– Employment in foreign affiliates reached 68 millions

people– MNCs share in total equity (assets) equalled to over 30

% (UNCTAD, 10) – MNCs share in total output = ca. 25 - 30%– Intra-corporate trade = ca. 1/3 of the total

international trade (UNCTAD, 10)

Robert Uberman, Multinational Corporations (MNCs)

Multinational Corporations Multinational Corporations - - statistical statistical overview (2)overview (2)

World Investment Report 2011: Global Investment Trends, UNCTAD, New York and Geneva, 2011, pp.25

Data in USD billion

Robert Uberman, Multinational Corporations (MNCs)

The biggest World MNCs (1)The biggest World MNCs (1)

Robert Uberman, Multinational Corporations (MNCs)

The biggest World MNCs (The biggest World MNCs (22)): : The top tenThe top ten

• The biggest out of biggest– 8 American (rapid change upward, probably

a historical record)– 1 Chinese– 1 Swiss

• Industry structure:– 2 oil & gas (probably the lowest for 50 years)– 3 computer related– 2 FMCG– 1 telecom, retail and machinery

Robert Uberman, Multinational Corporations (MNCs)

Global 500 (geography)Global 500 (geography) – FT, 2011/03/30 – FT, 2011/03/30

Robert Uberman, Multinational Corporations (MNCs)

London vs New YorkLondon vs New York

Source: Brooke Maters. NY shares top spot in financial ranking. FT, 12 march 2010

Robert Uberman, Multinational Corporations (MNCs)

The biggestThe biggest MNCs ranked by share of MNCs ranked by share of foreign assetsforeign assets

Source: The Economist following UNCTAD World Investment Report 2012

Robert Uberman, Multinational Corporations (MNCs)

Key topicsKey topics

• MNCs objectives as a result of their ownership structures

• Sources and methods of MNCs’ strategy creation

• Impact of MNCs activities on national economies

• Future of MNCs