Makalah Bisnis Internasional

"Globalization of multinational companies (MNC) about product ratings and

company ratings"

Diajukan Untuk Memenuhi Salah Satu Tugas Kuliah Bisnis Internasional

Dosen Mata Kuliah : Oktora Yogi Sari,S.Sos.,M.T.

Disusun Oleh :
Luvita Fransisca Wijaya ( 0218101483 ) ( L)

PROGRAM STUDI MANAJEMEN S1

FAKULTAS BISNIS DAN MANAJEMEN
UNIVERSITAS WIDYATAMA BANDUNG
TAHUN AKADEMIK 2020
 CHAPTER 1

PRELIMINARY

1.1 Background
The development of multinational companies in a country is very influential
on the country's economy where unemployment will decrease so that the country's
income itself will automatically increase.
In order to help change the State, especially Indonesia, the development of multi-
national companies is a top priority in the development of the State. So this
development requires a very good concept so that all goals are achieved. Thus the
elements of government are important before they lead to the company itself.
Multinational Corporation or Multinational Corporation (MNC) is one of
the discussions in the international economy, which sees that the world as a
unitary economic entity and its impact on the global economy is very important.
Many parties do not agree with the presence of MNCs in this increasingly modern
era of globalization. There is an external opinion that says that multinational
companies are only agents of economic imperialism that have the aim to make as
much profit as possible without considering the effects that arise on the
environment and humans, besides there are also some opinions that multinational
companies are actually under the control of certain elites who try to expand his
power and influence. However, if this opinion is ruled out, it can indeed be
concluded that MNCs do play a role on an international scale.

1.2 Formulation of the problem

1. Explain the industry background and whether the industry is
categorized as highy concerentrated, concentrated, fragmented, or
fragmented highy?
2. Mention market participants or corporations engaged in the industry?
3. Mention information about the top 10 exporters and importers?
1.3 Purpose
1. To find out the industry background and to choose which industry to enter
in
2. To find out market participants engaged in the industry
3. To find out information about the top 10 exporters and importers
 CHAPTER II
DISCUSSION

2.1 Background Industry

1. Apparel and Textiles.

History:

The textiles and apparel industry is an ancient one; bone needles have been found
dating as far back as 30,000 BC. During that time, the majority of clothing was comprised
of prepared animal hides, with civilizations weaving together various animal and
vegetable fibers to create unique clothes. The industry experienced relatively slow
development and a lack of progress until the industrial revolution, when production of
textiles and apparel was significantly altered by technology, including the cotton gin and
pedal-powered sewing machines.

In fact, due to high amounts of labor required in making a piece of fabric, the
textile industry was among the first to be mechanized. Since then, there have been many
technological advances on the textile side of the industry, which is very heavily
dependent on technology, mostly incorporating the use of automation. The apparel side of
the industry is still primarily done with human labor (humans operating sewing machines,
etc.). This is the primary reason for the allocation of this industry in cheaper labor
markets.

Highly Concentrated

The Apparel and Textiles industry is Fragmented. The production in this industry
is divided among a few different companies, however, no single firm has large
enough share of the market to be able to influence the industry's direction or price
levels.

2. Consumer Products

History:
 The industry is now well-established in the marketplace, having benefited
from substantial growth as a result of the industrial revolution of the mid-19th
century in Western Europe and the United States. The revolution made it possible
to manufacture many goods in an efficient, cheaper, and consistent manner. This
enabled more people to buy more products, ultimately resulting in the creation of
an urban middle class that had the means to demand more goods and the time to
spend obtaining them. Since then, the consumer products industry has been a
major component of every nation’s economy.

Highly Concentrated

The Consumer Products industry is Concentrated. The production in this industry

is dominated by a many large firms that are capable of shaping the industry’s
direction and price levels.

3.Food and Beverage

History:

Food has been processed for nearly as long as it has been used. In early
times, humans used to dry or smoke meat or other foodstuff in order to preserve it
for longer periods of time. Salt preservation was also very common in the diet of
sailors and soldiers during those times. Food processing essentially remained
unchanged until the 19th century with the invention of canning by Nicholas
Appert and pasteurization by Louis Pasteur. Both of these innovations changed
the way that food was processed into a longer lasting food product that was
canned or bottled.

During wartime, the food and beverage industry shifted, as food is often a
precious commodity. Prices were determined by availability and regulation. Most
countries involved in World War II rationed food and regulated prices in order to
stabilize the economy. This increased innovation in the food processing segment
with the inventions of food coloring, juice concentrates, artificial sweeteners, and
more advanced preservatives, such as sodium benzoate. These innovations led to
the current food processing market in place today with convenience foods, such as
frozen TV dinners and instant meals, prepared snacks, and other instantly
available foods.

The food distribution segment of this industry is fairly new. Prior to the
industrial revolution, consumers typically ate what foods were available to them
in their regional market. Foods were processed from these markets and used for
journeys out of them. With the increased transportation of the industrial
revolution, such as railroads and barges, as well as the concurrent rise in
technology such as canning, it became feasible to transport food from one
regional market for sale in another. Today, the industry segment has evolved even
further due to increased transportation technology such as airplanes.

Highly Concentrated

The Food and Beverage industry is Fragmented. The production in this industry is
divided among a few different companies, however, no single firm has large
enough share of the market to be able to influence the industry's direction or price
levels.

4. Hospitality and Travel

History:

Hospitality has its recorded origins in the Roman Empire when Roman
businessmen and authorities had to travel much further distances to accomplish
their work. Originally, inns were the host’s actual house. The host charged guests
for spare rooms and food that they had, eventually realizing that they could do this
as a full-time job.

Once demand started to increase, people created buildings designed

specifically for tourists or passing businessmen and authorities, as well as
buildings specifically to feed these passer-bys. Despite much refinement and
evolution in the services and offerings, as well as the invention of the more
modern forms of transportation, lodging and food service remains exactly as it
was then.

Highly Concentrated

The Hospitality and Travel industry is Fragmented. The production in this

industry is divided among a few different companies, however, no single firm has
large enough share of the market to be able to influence the industry's direction or
price levels.

5. Pharmaceuticals

History:

The use of medicine or drugs dates back as far as the Medieval Ages where
there are records of earlier peoples using herbs and other plants for their supposed
healing properties. Some of these plants actually did have legitimate healing
properties and are still used today. The modern pharmaceutical industry can be
traced back to the discoveries of insulin and penicillin in the early 20th century.

These products began to be mass manufactured, particularly in European

countries, with other developed countries following close behind. The
implementation of scientific processes to the research and discovery of new
medicines has led to the industry that exists today, with companies constantly
searching for new products that heal, prevent, and cure consumers.

Highly Concentrated

The Pharmaceuticals industry is Highly Concentrated. The production in this

industry is dominated by a small amount of large firms that are able to shape the
industry’s direction and price levels.
 2.2 Corporations

1. Apparel and Textiles

Market Value
Country (Billions USD)

United States $309.40

France $144.00

Spain $98.00

Germany $52.00

Sweden $29.70

Canada $22.50

Hong Kong $20.00

China $18.90

United Kingdom $10.70

Thailand $8.40

Taiwan $5.50
 2. Consumer Products

Market Value
Country (Billions USD)

United States $993.70

Japan $388.40

France $251.70

Netherlands $190.44

China $190.40

United Kingdom $188.00

Switzerland $97.10

Germany $78.40

India $56.60

South Korea $43.50

Sweden $27.40

Luxembourg $24.80

Indonesia $10.80
 Market Value
Country (Billions USD)

Hong Kong $4.70

3.Food and Beverage

Market Value
Country (Billions USD)

United States $869.76

China $465.90

Switzerland $322.70

Belgium $175.70

United Kingdom $148.50

France $97.10

Japan $72.60

Netherlands $56.30

Mexico $54.60

Canada $51.50
 Market Value
Country (Billions USD)

Hong Kong $31.40

Thailand $19.90

Denmark $19.30

Ireland $19.20

Singapore $17.00

Saudi Arabia $15.40

Taiwan $13.10

Brazil $12.30

Norway $11.40

South Korea $10.80

Portugal $9.90

South Africa $7.20

 4. Hospitality and Travel

Market Value
5. Country (Billions USD)

United States $799.70

China $112.50

Japan $69.80

United Kingdom $67.99

France $54.20

Thailand $52.60

Hong Kong $39.40

Spain $26.80

Ireland $23.20

Germany $18.60

Australia $18.50

Singapore $8.60

Canada $6.60
 Market Value
5. Country (Billions USD)

Chile $6.50

Turkey $3.40

South Korea $3.00

5.Pharmaceuticals

Market Value
Country (Billions USD)

United States $1,782.20

Switzerland $397.60

United Kingdom $210.60

Japan $179.60

Ireland $159.30

Denmark $124.60

France $113.00

Germany $109.90
 Market Value
Country (Billions USD)

China $83.60

Australia $61.70

Hong Kong $33.80

India $23.10

South Korea $22.70

Netherlands $20.30

Spain $18.50

Israel $15.50

Belgium $14.90

Canada $8.94
2.3 Trade Statistic

1. Apparel and Textiles.

Top 10 Export Countries

Country Export USD$

Italy $66,537,725,187

Germany $55,844,930,781

India $43,398,320,663

United States $36,369,998,892

France $32,572,546,114

Hong Kong $30,828,872,864

Turkey $29,686,637,194

Belgium $26,597,554,926

Spain $25,939,953,198

Netherlands $23,433,575,622
Top 10 Import Countries

Country Import USD$

United States $168,980,238,849

Germany $74,921,359,876

Japan $50,890,891,695

France $49,105,518,059

United Kingdom $45,923,234,140

Italy $41,806,585,117

Spain $31,957,698,564

Hong Kong $29,913,556,938

Netherlands $27,046,576,989

South Korea $24,116,099,126

 2. Consumer Products

Top 10 Export Countries

Country Export USD$

United States $125,310,209,281

Germany $103,190,666,805

Hong Kong $63,841,687,762

Italy $58,531,418,866

France $58,298,437,630

Switzerland $49,279,814,893

India $49,171,167,225

United Arab Emirates $40,805,536,050

United Kingdom $39,866,732,997

Belgium $39,075,777,289
Top 10 Import Countries

Country Import USD$

United States $284,625,530,068

Germany $93,870,316,747

Hong Kong $76,746,372,667

France $63,426,536,078

United Kingdom $63,368,845,422

Japan $48,998,494,222

United Arab Emirates $41,629,589,655

Switzerland $41,294,538,745

Canada $40,735,333,228

India $40,027,348,039
3.Food and Beverage

Top 10 Export Countries

Country Export USD$

Germany $1,616,899,378

United States $1,571,998,225

Denmark $1,354,852,872

Netherlands $1,219,100,193

France $1,207,718,028

Thailand $796,800,592

New Zealand $702,485,626

Belgium $572,193,980

Ireland $385,411,768

Brazil $332,922,657
Top 10 Import Countries

Country Import USD$

United States $1,845,093,781

Germany $1,226,466,351

Japan $877,316,765

Netherlands $703,758,533

France $543,874,767

United Kingdom $538,375,321

Belgium $415,988,467

Mexico $403,370,946

Spain $393,473,418

Canada $378,724,640
 4. Hospitality and Travel

Total Global Exports (2012) $1,134,758,279,000

Total Global Imports (2012) $1,031,750,698,000

5. Pharmaceuticals

Top 10 Export Countries

Country Export USD$

Germany $102,142,872,106

Switzerland $79,514,055,760

United States $61,370,203,602

Ireland $56,425,504,784

Belgium $51,550,756,431

France $36,604,575,172

United Kingdom $33,527,912,723

Italy $29,991,234,994

Netherlands $25,326,801,079

Denmark $16,350,320,818
 Country Export USD$

Top 10 Import Countries

Country Import USD$

United States $124,636,565,610

Germany $62,060,884,450

Belgium $43,564,699,772

United Kingdom $32,603,577,624

Switzerland $31,907,208,912

Italy $31,368,382,214

France $31,138,993,197

Japan $27,653,097,558

Spain $17,477,553,884

Netherlands $16,945,341,754
 Country Import USD$

CHAPTER III

CLOSING

3.1 Conclusion

Multinational Corporation or Multinational Corporation (MNC) is a

business entity that owns, controls, and manages production facilities spread
across a number of countries. Usually multinational companies are large and have
many branches that spread to countries around the world, including developing
countries. The influence, role and impact caused by the presence of multinational
companies for the international economy is quite numerous.

The impact can be in the form of positive and negative impacts, for
example a positive one like this company can help a country to provide assistance
resources for development in the country, and the negative is the loss of a number
of domestic jobs. That is because multinational companies divert some of their
capital and business activities abroad. Even so, this multinational company is very
important for the economy, because developing countries can be more open and
free access to capital and other resources by liberalizing their capital markets.