2 TERRITORYPOPULATIONECONOMY (GDP- Gross Domestic Product) ARMED FORCES BIGGEST RUSSIA 17 mln. square km CHINA 1.34 billion UNITED STATES $14.25 trillion CHINA 2.5 million men SMALLEST VATICAN 0.3 square km VATICAN 826 NAURU $60 million VATICAN 107 Swiss guards Some of the 193 states…

TNCs control over 70% of global trade Over 50% of TNCs based in United States, Japan, France, Germany, and Britain. 95% of all TNCs are found in the Developed World.

TNCs control key parts of the world economy. Control most of the worlds energy, resources, and manufacturing sectors. Even food development is controlled by TNCs. 85% of grain production controlled by 6 companies. iNA

Important for countries to keep TNCs. Provides jobs, investment, and resources. Governments use strategies like low taxes, selling resources at low prices, and subsidizing industry to keep TNCs.

TRANSNATIONAL CORPORATIONS (TNCs) The first in history was established in 1600 – British East India Company There are 63,000 transnational corporations worldwide, with 690,000 foreign affiliates 51 of the world's top 100 economies are corporations Three quarters of all transnational corporations are based in North America, Western Europe and Japan Ninety-nine of the 100 largest transnational corporations are from the industrialized countries Royal Dutch Shell's revenues are greater than Venezuela's Gross Domestic Product. Using this measurement, WalMart is bigger than Indonesia. General Motors is roughly the same size as Ireland, New Zealand and Hungary combined 7

Q: Of the 100 top economies in the world, how many are multinational corporations and how many are nation states? © 2005 Accelerating.org

Q: Of the 100 top economies in the world, how many are multinational corporations and how many are nation states? 51 MNCs and 49 Nations. © 2005 Accelerating.org

Q: Disney and Sony (respectively) produce and launch one new product every _________? © 2005 Accelerating.org

Q: Disney and Sony (respectively) produce and launch one new product every _________? Once every three minutes for Disney. Once every twenty minutes for Sony. © 2005 Accelerating.org

Q: How much of Hewlett Packards revenue comes from products launched in the last year? © 2005 Accelerating.org

Q: How much of Hewlett Packards revenue comes from products launched in the last year? 70% © 2005 Accelerating.org Elizabeth Debold, What is Enlightenment?, March-May 2005

Q: How many of the lowest net-worth Americans would it take to approximate Bill Gates net worth? © 2005 Accelerating.org

Q: How many of the lowest net-worth Americans would it take to approximate Bill Gates net worth? Roughly 110 million Americans in 1997, when his net worth was $40 billion. At $30 billion presently (2005), Mr. Gates ranks roughly as the 60 th largest country (of 280) and the 55 th largest business. When MSFT went public in 1986, Bill was worth $230 million. © 2005 Accelerating.org NYU economist Edward Wolff, Top Heavy, 2002

Five Reasons to Pursue International Business 1. Expanded profit potential 2. More customers 3. More capital 4. Lower cost suppliers 5. Lower costs of labor

Multinational Corporation (MNC) A business with extensive foreign operations in more than one county. Transnational Corporation A MNC that operates worldwide on a borderless basis. Fortunes Top 10 Multinational Corporations 1. Wal-Mart Stores 6. DaimlerChrysler 2. BP 7. Toyota Motor 3. Exxon Mobil 8. General Electric 4. Royal Dutch Shell Group 9. Total 5. General Motors 10. Chevron

Protectionism A call for tariffs and special treatment to protect domestic firms from foreign competition. Corruption Illegal practices to further ones business interests. Transparency International gives these countries its poorest corruption scores: Indonesia Nigeria Tajikistan Bangladesh Haiti Paraguay Myanmar

Sweatshops Employ workers at very low wages, for long hours, and in poor working conditions. Child labor The full-time employment of children for work otherwise done by adults. Sustainable Development Development that meets the needs of the present without hurting future generations.

Marketization: spread of the market Corporate capitalization as a way of running the economy Reshapes government affairs Begins as a way of using dependence eventually to control

95% of all TNCs are in the Triad (developed world) Profits along with cheap food and consumer goods go to the developed world -leads to control over the food resources and most resource development in the developing world