GLOBAL

CORPORATIONS

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Brief overview:

Global corporations are integral part of

economic growth. The dynamics of the business
environment fostered by the drastic political
changes and the economic liberalization across
the world has enormously expanded the
opportunities for global corporation. Global
corporations account for a significant share of
the world's industrial investments, production,
employment, and trade.
What is Global Corporations?

- A global corporation, also known as a global

company, is coined from the base term ‘global’, which
means all around the world. A global company is
generally referred to as a multinational corporation
(MNC). A MNC is a company that operates in two or
more countries, leveraging the global environment to
approach varying markets in attaining revenue
generation.
The Birth of Global Corporations:

Global corporations can be traced in the

early historical period wherein patterns of
trade and exchange are evident. During
this time, cities, and countries extended
their beyond their borders. Complex
patterns of interactive engagements
through organized trade followed influence
by the emergent and dominant technologies
particularly in shipping and navigation.
Global Interaction era

Global interaction era or the period of

modern nation state system emerged prior to
the end of World War II.
Types of Global Companies

1. International companies are importers and

exporters, typically without investment
outside of their home country.
2. 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.
3. Global companies have invested in and are
present in many countries. They typically
market their products and services to each
individual local market.
4. Translational companies are more complex
organizations, which have invested in foreign
operations, have a central corporate facility
but give decision making, research and
developments (R&D) and marketing powers to
each individual foreign market.
The power of Global Corporations

1. Economic control - That global corporations have on world trade,

financial markets, technology, patents, intellectual property of
rights, and the media.
2. Political influence - that global corporations have on national
governments and regional governance structures (e.g., the
EU) and national and international economic and social policies.
3. Social and cultural influence that global corporations have
on people's attitudes, values, and lifestyle choices through media
control, advertising, branding, and sponsorship, and the impact
they have on people's well-being in terms of rights, health,
income, employment, and working conditions.
4. Environmental impact - that global corporations have on the
natural environment.