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The Market Integration Global Inter State System Contemporary Global Governance Copy 1
The Market Integration Global Inter State System Contemporary Global Governance Copy 1
Inter-state System,
Contemporary Global
Governance
TCWD111
OBJECTIVES
International companies
▪ 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.
Global Corporation
Global companies
▪ have invested in and are present in
many countries. They typically
market their products and services
to each individual local market.
Global Corporation
Transnational companies
▪ more complex organizations which
have invested in foreign operations,
have a central corporate facility but
give decision making, research and
develop (R&D) and marketing
powers to each individual foreign
market.
Global Corporation
Transnational companies
▪ “enterprise that engages in
activities which add value
(manufacturing, extraction,
services, marketing, etc) in more
than one country (UCTC, 1991).”
Global Corporation
▪ Investment-based globalization
(1950-1970)
▪ Trade-based globalization (1970-
1995)
▪ Digital globalization (1995
onwards)
Foreign Direct Investment
▪ Examples:
▪ China’s Lenovo corporation’s purchase
of IBM’s PC business
▪ India’s investment in various
historically British firms including
Jaguar Land Rover (Economist, 2011).
BRICS Economies