The Future of Corporate Globalization: From the Extended Order to the Global Village

By Jeremiah J. Sullivan | Go to book overview
Save to active project

CHAPTER 12

THE MULTINATIONALS: FACING UP TO THE CHALLENGES

During the 1990s globalization was threatened by banking and currency crises in Mexico, Asia, Russia and Brazil; the collapse of OECD efforts to develop a multinational agreement on investment; and the derailment of the WTO’s trade liberalization efforts during the Battle of Seattle in 1999. Yet none of these events had more than a momentary effect on the mergers and acquisition activities which constitute the major share of cross-border, non-portfolio global capital flows. From 1990 to 1999 annual world foreign direct investment grew from about $200 billion to over $800 billion. Almost 75 percent of these flows consisted of European and American corporations buying and selling each other. Even so, in 1999 $198 billion was associated with developing countries, 500 percent more than in 1990. The globalization process is now well under way, and the engines pulling it along are the 53,000 multinational corporations, whose foreign revenues account for 7 percent of world gross domestic product. 1 These companies control 450,000 affiliates and subsidiaries, an average of nine each, suggesting that most MNCs are medium-sized firms that may have to get bigger to survive in an Internet-driven world of the kind described in Chapter 11. Their affiliates’ revenues are growing faster than world trade, an indication that entrenching themselves in host-country markets is their goal rather than exporting back to the home country. Mostly they are American, European, and Japanese manufacturers seeking to get closer to foreign customers in an increasingly competitive world where deep knowledge of end-user needs spells out the difference between success and failure, but they also are expanding into service businesses such as distribution and marketing.

-215-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
The Future of Corporate Globalization: From the Extended Order to the Global Village
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 261

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?