Globalization
• broadest sense describes the growing economic
and cultural transfers that occur between nations
– (access to the world-wide web, the opening of
another McDonald’s or another free trade
treaty)
• narrow sense, is used to refer to the increased
international traffic of goods and services, as well
as the economic policies of trade liberalization
• Our Shrinking World (Transportation)
Globalization could involved all these things
First
introduced
1982 –
commercial
internet late
1980s early
1990’s
history
Countries with the Highest Number of W
orld Languages Critically Endangered
history
history
FREE TRADE AGREEMENTS
ASEAN Free Trade Area (AFTA)
Asia-Pacific Trade Agreement (APTA)
Central American Integration System (SICA)
Central European Free Trade Agreement (CEFTA)
Common Market for Eastern and Southern Africa (COMESA)
G-3 Free Trade Agreement
Greater Arab Free Trade Area (GAFTA)
Gulf Cooperation Council (GCC)
North American Free Trade Agreement (NAFTA)
Pacific accord
South Asia Free Trade Agreement (SAFTA)
Southern African Development Community
Southern Common Market (MERCOSUR)
Trans-Pacific Strategic Economic Partnership (TPP)
Exploitation
Multinational (MNCs)&
Transnational Corporations (TNCs)
GLOBAL 500 COMPANIES - QUIZ
1. What company headed the Global 500 list in
2010?
Revenue $421,849,000,000
Profits $14,389,000,000
GLOBAL 500 COMPANIES - QUIZ
2. What are the next top four companies on
the list?
GLOBAL 500 COMPANIES - QUIZ
3. What country had the most companies on
the Global 500 list? How many companies
did this country have?
133 down
from139
since 2010
GLOBAL 500 COMPANIES - QUIZ
4. What are the next top four countries with
the greatest number of Global 500
companies?
68 down
from 71
2010
61 up
from 46
2010
35
down
from 39
2010
34
down
from 37
2010
GLOBAL 500 COMPANIES - QUIZ
5. How may Global 500 companies does
Canada and India have?
11
8
GLOBAL 500 COMPANIES - QUIZ
6. What company had the largest revenue?
32,843,000,000 (2011)
GLOBAL 500 COMPANIES - QUIZ
7. What is the name of the largest Canadian
Company on the list? Where did this
company rank?
Ranked #240 down from 208 in
2010 - $35,144,000,000
GLOBAL 500 COMPANIES - QUIZ
8. Name Canada’s other Global 500 companies.
2. Royal Bank of Canada (262)
3. Suncor Energy (268)
4. Power Corp. of Canada (299)
5. George Weston (Food) (310)
6. Toronto-Dominion Bank (310)
7. Magna International (automotive) (401)
8. Sun-Life Financial (406)
9. Onex (investment firm) (412)
10. Bank of Nova Scotia (425)
11. Research in Motion (490)
Canada
GLOBAL 500 COMPANIES - QUIZ
9. Estimate the number of Global 500 companies
that have their head offices in
The Core:
Semi Periphery:
Periphery:
Cities
2010
415 (83%)
2011
307 (81%)
85 ( 17%)
93 (19%)
0 (0%)
0 (0%)
GLOBAL 500 COMPANIES - QUIZ
10. How Fortune Global 500 companies are run
by women
12 (3%)
Women CEOs
Table 1: Top 10 Global 500 Countries - 2005
Rank
Company
Focus
Count ry
1
Walmart
Retail
United States
2
BP
Oil & Gas
285,059.0
3
Exxon Mobile
Oil & Gas
United
Kingdo m
United States
4
Oil & Gas
Netherlands
268,690.0
5
Royal Dutch Shell
Group
GM
Auto motive
United States
193,517.0
6
DaimierChrysler
Auto motive
United States
176,687.5
7
Toyota Motor
Auto motive
Japan
172,616.3
8
Ford Motor
Auot motive
United States
172,233.0
9
General Electric
United States
152,866.0
10
Total
Diversified
Financia ls
Oil&Gas
France
152,609.5
* Data fro m Fo rbes Global 500 list 2005
Revenu (US $
millions)
287,989.0
270,772.0
Table 2: Top 10 Global 500 Countries - 2010
Rank
Company
Focus
Count ry
1
Walmart
Retail
United S ates
2
Royal Dutch Shell
Oil & Gas
Netherlands
285,129.0
3
Exxon Mobile
Oil & Gas
United States
284,650.0
4
British Petroleum (BP)
Oil & Gas
246,138.0
5
Toyota Motor
Auto motive
United
Kingdo m
Japan
6
Japan Post Holdings
202,196
7
Sinopec
Mail
Japan
Delivery/Banking
and Insu rance
Oil & Gas
China
8
State Grid
Energy
China
184,496
9
AXA
France
175,257
10
China Nation al
Petroleum
Insurance and
Investments
Oil &Gas
China
165,496

Data from For bes Global 500 list 2010
Revenue (US $
millions)
408,214.0
204,106
187,518
Table 3: Top 10 Global 500 Countries Revenues Compared to GDP of Select Countries
Company
Company Revenues
(US $millions)
Country (GDP
rank in world)
Country
GDP (US $
millions)
402,709.9
Walmart
408,214 Turkey (19th)
Royal Dutch
Shell
Exxon Mobile
285,129 Denmark (28th)
275,237.0
284,650 Denmark (28th)
275,237.0
British
Petroleum (BP)
Toyota Motor
246,138 Greece (30nd)
244,951.4
204,106 Thailand (35th)
206,247.0
Japan Post
Holdings
Sinopec
202,196 Portugal (36th)
192,571.9
187,518 Hong Kong (37th)
189,798.1
State Grid
184,496 Hong Kong (37rd)
189,798.1
175,257 Venezuela (38rd)
181,861.8
AXA
Total
Over 2 Trillion
Dollars
Countries With Low GDP - 2010
Country
Malawi
El Salvador
Laos
Continent
Africa
Africa
Africa
GDP ($US 2009)
13 billion
43 billion
15 billion
Haiti
Chad
Afghanistan
North America
Africa
Asia
11 billion
17 billion
27 billion
Zambia
Ethiopia
Croatia
Africa
Africa
Asia
20 billion
86 billion
78 billion
Zimbabwe
Asia
5 billion
Total
315
Billion
Countries With Low GDP - 2010
Croatia
Haiti
Laos
El Salvador
Chad
Afghanistan
Ethiopia
Zimbabwe
Malawi
Zambia
Issues of Growth of MNC (TNCs)
• Growing power of MNCs
• Global expansion of global trade
• Protests against MNCs(TNCs) that operate
sweatshops to produce clothing shoes and other
goods in developing countries
• Anti-globalization protests in North America and
Europe made on franchieses of companies like
McDonalds and Starbucks
Benefits of of MNC (TNCs)
• Provides consumers with ever-widening range of
products and services @ affordable prices
• Overall increase in world economic growth that will
make everyone wealthier by providing more jobs
and greater economic production
• Stimulus for the economic development of
developing nations
• Faster more equitable sharing of the most recent
technological breakthroughs
Criticisms of of MNC (TNCs)
• Loss of local cultural identities as products from Japan,
US and Europe become commonly used
• Corporations are becoming so large - not clear whos laws
apply when a company’s operations extend far beyond
the borders of any one country
• Old Core nations become richer - most of the best jobs
and profits go to Core --> rest will get low paying jobs,
provide markets & suffer possible environmental damage
• Economic uncertainty --> MNCs shop around for best
places in which to do business (play 1 country against
another in search for cheapest labour or weakest
environmental standards