International Investment & MNCs

International Investment

Emerging Economies/ Emerging Markets--formerly referred to as Newly Industrialized Countries (NICs)

Capital flows to LDCs, another glimpse

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multinational corporation

· A business that has subsidiaries outside of its own country-not just about trading abroad

· Has ownership of plants, resource extraction, processing operations, and/or services

· Package of capital, technology, managerial skills, marketing skills

· MNCs are measured in Gross Corporate Product (GCP)

· MNCs are measured in GCP-gross corporate product (total revenue a company makes in a year)

· MNCs overwhelmingly based in GN:  Fortune 500 MNCs

    -95% are owned by GN

    43% are American or Japanese

    -all but 5% held by EDCs

    -few GS investors in or holders of MNCs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MNC history:

-Post WWII-Cold War era--LDCs felt threatened by MNCs

-Post-Cold War era, need development, see MNCs as opportunity

-In post CW era, MNCs have helped to internationalize the process of production