LESSON 2

THE GLOBAL ECONOMY

Prepared by

JOSE CRUZ MORALES, M.B.A.

PRESENTATION OF
ACTIVITY #1
 CONNECTING
The students are expected to:

1. Distinguish
economic
globalization and
modern world
system
 CONNECTING
The students are expected to:

2. Identify the
actors that
facilitate
economic
globalization
 CONNECTING
The students are expected to:

3. Articulate
a stance on
global
economic
integration
 CONFIGURING

Trade takes center stage

• President Trump made it
clear during the 2016
presidential campaign
that he intended to
either renegotiate or
withdraw from most of
the United States’
international trade
agreements.
• In 2018, he may
finally focus his
energy on these
campaign
promises, which
would put our
prosperity at risk.
• Early on in 2017, he
announced the U.S.
withdrawal from the
Trans-Pacific
Partnership.
• We’re already
beginning to see the
negative impact of
that decision. Our
economic and
political influence in
Asia may decline in
2018 and the years
ahead.
• He has also set
his sights on
the North
American Free
Trade
Agreement and
began
renegotiating
its terms. Talks
are likely to
accelerate in
2018, with the
pact’s
unraveling a
real possibility.
• And in
interviews,
he has
declared the
World Trade
Organization
“a disaster.”
• International
trade deals are
an often
misunderstood
part of U.S.
economic policy.
However, they
can have a large
impact on the
economy.
• Since the end
of World War II,
the U.S. has
taken the lead
in setting up a
multilateral,
rules-based
system of
international
trade.
• The General Agreement on Tariffs • Central to this
and Trade (GATT) is a system was the
legal agreement between many General
countries, whose overall purpose
was to promote Agreement on
international trade by reducing or Tariffs and
eliminating trade barriers such Trade. In 1994,
as tariffs or quotas. ... Experts this agreement
attribute part of these tariff changes was transformed
to GATT and the WTO. into the WTO.
• Under this system,
world trade has
expanded
dramatically over the
last 70 years. In
1947, trade
accounted for
approximately 6
percent of U.S. gross
domestic product,
whereas it now
accounts for
approximately 15
percent.
• Today, U.S. exports
support over 11
million jobs, while
imports of many
staples from
overseas increase the
purchasing power of
domestic
households.
• A retreat from a
multilateral rules-
based system of
trade brings with it
many problems.
Domestically, it
increases the
probability of
“trade wars” with
our major trading
partners.
• Relatively minor
disputes could easily
escalate into trade
sanctions and counter-
sanctions, like in the
aftermath of the
Depression-era Smoot-
Hawley Tariff, which
raised tariffs on
hundreds of imports.
• Internationally, it
could make it more
difficult for
developing
countries to
engage in trade
relations with their
much larger and
wealthier
counterparts.
• While the Trump
administration has
drawn attention to the
U.S.’s large trade
deficit, most
economists agree that
trade agreements
have little to no effect
on that.
• Certainly,
some
aspects of
institutions
such as
NAFTA and
the WTO can
be
questioned.
• However, a
general retreat
from the postwar
system of trade
could be a
dangerous path
for both the U.S.
and the broader
world economy.
 DECODING
• 1. Why do you think
President Trump has
said during his
presidential campaign
that he would
renegotiate or withdraw
U.S.’s international trade
agreements?
 DECODING
• 2. What do you think
are the effects of US
withdrawal to
international trade
agreements?
 DECODING
• 3. Will the
Philippines be
affected of this
motion ? Why or
why not?
 ADVANCING

THE GLOBAL ECONOMY

• The discussion will primary be guided by this
question: “Why the regions around the globe are
have glaring differences when it comes to
economy?”
• For the past centuries, the global economy has
significantly changed. In the 11th century, the
long distance trading flourished between Venice
and the Netherlands.
•The woolen industry in the 13th century in
Flanders and in 14th century in Florence can
also be an example of a sustained economic
growth throughout history. Those global
changes have contributed much to the
economy of the world. There was the birth
of capitalism.
• Conversely, the standards of living of most of the
population in the globe have remained at the
subsistence levels until in the middle of 18th
century. In Gary Gereffi’s journal, The Global
Economy: Organization, Governance, and
Development, he mentioned that the global
changes are attributed to how the global
economy is organized and governed.
• He furthered that these changes give
impact not only to the flow of goods and
services across national borders, but
also the implications of these processes
for how a particular country move up or
down in the international scene.
• Nowadays, the various countries’ strategies on
development are influenced by the new degree on
how industries are organized. These development
strategies are manifested in a shift in theoretical
frameworks from those centered on the legacies and
actors of nation-states to a greater concern with
supranational institutions and transnational
organizations.
•Developed countries and developing
countries like the Philippines have to
fully understand the impact of the
contemporary global economy to
improve their position in the global
system.
•There is no singular academic field that can
completely explain the topic of global
economy because it is inherently
interdisciplinary. According to Gereffi, the
global economy can be studied at different
levels of analysis.
• First is at the macro level in which this includes the
international organizations and regimes that establish
rules and norms for the global community. The World
Bank, the International Monetary Fund, the World
Trade Organization, and the International Labor
Organization are the existing international
organizations that make impact to the economy of the
world.
• The regional integration schemes like the
European Union and the North American Free
Trade Agreement are also part of these
organizations. Since these regimes blend both
the rules and resources, they substantiate the
widest parameters within which the global
economy operates.
•Next is the meso level in which it is
believed that the building blocks for the
global economy are the countries and
firms. The global economy is seen as the
arena in which countries compete in
different product markets.
• The last is at the micro level. There is a growing literature on the
resistance to globalization by consumer groups, activists, and
transnational social movements. Therborn (2000) expressed,
“There are many theories related to economic sociology
incorporate the global economy in their frameworks, but they
differ in the degree to which it is conceptualized as a system that
shapes the behavior and motivation of actors inside it, or as an
arena where nationally determined actors meet, interact, and
influence each other.”
•
The development of a world trading system over a period of
several centuries helped to create the tripartite structure of
core, semi peripheral, and peripheral economic areas.
According to world-systems theory, the upward or downward
mobility of nations in the core, semi periphery, and periphery
is determined by a country’s mode of incorporation in the
capitalist world-economy, and these shifts can only be
accurately portrayed by an in-depth analysis of the cycles of
capitalist accumulation in the longue durée of history
(Wallerstein 1974, 1980, 1989; Arrighi 1994).
• The foundation for a process of industrialization
and new international divisions of labor on a
global scale is attributed to the dynamics of the
capitalist world-system. Adam Smith, an
eighteenth-century political economist, defined
“division of labor” as the specialization of
workers in different parts of the production
process, usually in factory setting.
• Gereffi stressed that the division of labor also acquired a
geographical dimension during the influx of industrial
economies as evolved. In a global scope, the “classic”
international division of labor was between the industrial
countries producing manufactured goods and the non-
industrialized economies that supplied raw materials and
agricultural products to the industrial nations which became
a market for basic manufacturers.
•Years after World War II, trade flows
have become far more complex,
and so have the relationships
between the developed and the
developing nations of the global
economy.
END
 LESSON 3

MARKET INTEGRATION
PREPARED BY

JOSE CRUZ MORALES, M.B.A.

 CONNECTING
• The students are •Explain the role
expected to: of international
financial
institutions in the
creation of a
global economy
 CONNECTING
•Identify the
• The students are attributes of global
expected to: corporations
 CONFIGURING

Globalization and Labor Market Integration

in Late Nineteenth-
and Early Twentieth-Century Asia
• By: Gregg Huff and Giovanni Caggiano
• Beginning in the late
nineteenth century,
•globalization
globalization swept swept
through Asia, through Asia
transforming its
product and labor
markets.
•steamships • By the 1880s steamships
had largely replaced
had largely sailing vessels for
transport within Asia as
replaced well as to Western
markets, and shipping
sailing fares had begun to fall
sharply.
vessels
•mass • Also already underway was
the mass migration of Indian
and Chinese workers,
migration of principally from the labor-
Indian and abundant areas of Madras in
India and the provinces of
Chinese Kwangtung (Guangdong) and
Fukien (Fujian) in
workers Southeastern China, to land-
abundant but labor-scarce
parts of Asia.
•Burma,
• Chief among the immigrant-
receiving countries were Burma,
Malaya and Thailand (Siam) in
Malaya and Southeast Asia. Indian and
Chinese labor inflows to these
countries constituted the bulk of
Thailand two of three main late nineteenth-
and early twentieth-century global
(Siam) migration movements, the other
being European immigration to the
New World.
•in response • Immigration to Southeast
Asia was almost entirely
to its in response to its growing
demand for workers
growing which, in turn, derived
from rapidly expanding
demand for demand in core industrial
countries for Southeast
workers Asian exports.
 •integrated
• Studies by Latham and Neal
(1983) and by Brandt (1985,
1989) establish the
development of an integrated
Asian rice market beginning
in the latter part of the
Asian rice
nineteenth century (see also,
.Myung, 2000).
market
•internationally • Furthermore, a series of articles
and books by Williamson and his
co-authors reveal internationally
integrated integrated commodity markets and
relative factor price convergence in
commodity conjunction with pre-World War II
globalization. ( Williamson, 2000,
2002; O’Rourke and Williamson,
markets 1999; Hatton and Williamson,
2005).
•integrated • But in contrast to work on
product market
integration, the possible
Asian emergence of an
integrated Asian labor
labor market has attracted less
attention. In part this
market reflects the lack of Asian
wage data.
•Analysis of • As Harley (2000, p. 928)
observes, “Analysis of the
low-wage periphery, which is
the low-wage most relevant to modern
[globalization] debate, is
periphery restricted by data availability”.
This article makes available
for the first time the data
needed to test for labor
market integration over a
large part of Asia.
 1ST AIM OF THE ARTICLE
• The article has two main aims.
•an integrated
• One is to analyze whether as
part of pre-World War II
Asian market
globalization an integrated Asian
market for unskilled labor
for unskilled
existed to encompass Asia’s
chief emigrant-sending regions labor
of South India and Southeastern
China and the principal
Southeast Asian receiving
countries for Indian and Chinese
immigrants.
•that a correction • Our metric for integration, following
both econometric works on GDP
convergence and Robertson’s
mechanism recent analysis of integrated labor
pushes wages markets, comprises three
complementary criteria: (i) that
towards wages do not diverge from a
common trend; (ii) that over time
equilibrium wage dispersion does not
increase; and (iii) that a correction
relationship mechanism pushes wages towards
equilibrium relationship
aftershocks.
• Markets are • It can be misleading, as
integrated if Robertson (2000, p.728)
warns, to rely on price as
adjustment a criterion for integration.
mechanisms operate Markets are integrated if
to correct deviations adjustment mechanisms
from a wage operate to correct
deviations from a wage
differential or “gap”. differential or “gap”.
 2ND AIM OF THE ARTICLE
•compare
• Second, the article aims to
compare wage trends in the
area of Asia from South India
to South China and including
Burma, Malaya and Thailand
with an industrial core of the
wage
global economy, defined as
the United Kingdom, United
trends
States, Germany and France.
•markets in • Were unskilled labor
markets in Asia and the
Asia and the industrial core similarly
affected by globalization
industrial core such that in these two
parts of the world wages
similarly followed a common trend?
affected by
globalization
•in contrast • Or, in contrast to
commodity markets,
to was globalization in
commodity Asia and the
industrial core
markets associated with a
drifting apart of real
unskilled wages?
• We argue that by the
late nineteenth century
South India, •had become
Southeastern China integrated and
and the three
Southeast Asian constituted a
countries had become unified labor
integrated and
constituted a unified market
labor market.
 • Furthermore, Asian
evidence reveals a period
•real wage of real wage convergence
prior to the 1930s. But
convergence labor market integration
that characterized Asia,
and also obtained in the
industrial core, stopped at
the geographical frontiers
of each of these two
regions.
•hardly • Unlike Asia’s export of
primary commodities,
penetrated flows of Asian labor
either the core hardly penetrated
either the core
industrial industrial countries, or
countries the wider Atlantic
economy.
 DECODING
•1. What do you think
is the purpose of the
article?
 DECODING
•2. From the article
read, define what
market integration is.
 DECODING
•3. Extract the
statements that prove
that there was market
integration in Asia.
 DECODING
•4. Describe the labor
market integration in the
late 19th century and in
the early 20th century.
 ADVANCING

The Rise of the Global

Corporation
By: Deane Neubauer
 Part One: The historic rise of the global
corporation—three periods
• As indicated throughout this
text, global corporations are • globalization
inseparable from the more
general phenomenon of serves to
globalization itself. It follows
that how one identifies
“locate” global
globalization serves to
“locate” global corporations,
corporations
both in the complex
interactive pattern defined by
globalization and within given
historical periods.
 Early Patterns of Trade
• The approach to the study of
globalization sometimes termed • Moore and Lewis
“historical globalization” locates the 2000.) In early
phenomenon itself in early patterns of historical periods as
trade and exchange (Bentley, J. 2003;
Gills, 2006; Moore and Lewis 2000.) both cities and
In early historical periods as both countries extended
cities and countries extended their
reach beyond their own borders, this
view holds, a form of globalization
their reach beyond
was initiated which then followed their own borders
complex patterns of interactive
engagements organized through trade
and directly influenced by the
emergent and subsequently dominant
technologies, especially in shipping
and navigation (Harvey, 1990).
• As Moore and Lewis contend,
the entities operating within this •foreign direct
environment were functionally
and organizationally not so very investment and
different from contemporary
organizations, being possessed
value-added
of “head offices, foreign branch
plants, corporate hierarchies,
activity (Moore
extraterritorial business law, and and Lewis,
even a bit of foreign direct
investment and value-added 2000; 31-32).
activity (Moore and Lewis, 2000;
31-32).
• The vast heterogeneity of this
long period, however, leads a
majority of scholars to situate
•modern
the direct antecedents of the
contemporary global corporation
nation state
within the dynamics of a two
plus-centuries long duration
system
spanning the period prior to the
end of WW II in which the
emerged
modern nation state system
emerged in ways that allowed
invention and social
organization to combine that
vastly increased world capital
and the wealth of nation states.
• Coupled with an extraordinary
rise in global population that •invent new ways
attended the industrial
revolution, the societies that
to organize the
arose would invent new ways to world itself
organize the world itself through
colonialism and imperialism that through
vastly attenuated their
interactions between peoples,
colonialism and
states and regions such that a imperialism
clearly differentiated era of
global interaction can be said to
exist (Harvey, 1990).
Characteristics of Global Corporations
• Many of the characteristics of the
global corporation that we examine • patterns of equity
directly in this chapter date from
this period (e.g. patterns of equity
ownership, corporate
ownership, corporate ownership ownership and
and management of subsidiaries,
the relationship of “central” management of
organizational functions to supply
and distribution chains, etc.) as
subsidiaries, the
attributes of corporate structures in relationship of “central”
the most prosperous and globally-
engaged nations (largely through organizational
colonial and imperialist functions to supply and
relationships).
distribution chains
• As the world emerged from the • led overwhelming by
vast destructions of WWII, American corporations
economic recovery and
expansion were led
overwhelming by American
corporations which for a period • re-entry of Japanese
from the end of the war until the and European
re-entry of Japanese and corporations onto the
European corporations onto the
global scene essentially stood global scene
for what by then had come by
then to be viewed as
multinational corporations
(MNCs) (Barnet and Muller,
1974).
• This period from the end of WWII to • the transformations of
the present can be viewed, the global corporation
therefore, as a third and distinct
period in the transformation of the occurring within this
global corporation. As the next third period have been
parts of this chapter detail, the far reaching and
transformations of the global
corporation occurring within this distinctive
third period have been far reaching
and distinctive, reflecting changes
taking place within the broader
structural dimensions of
globalization itself and at the same
time significantly contributing to
those continuing changes.
 Part Two: How do global corporations function?
What constitutes a global corporation?
• The contemporary global
corporation is simultaneously
•multinational
and commonly referred to either corporation (MNC),
as a multinational corporation
(MNC), a transnational a transnational
corporation (TNC), an corporation (TNC),
international company, or a
global company. While much of an international
the remainder of this chapter will
serve to clarify some of these
company, or a
distinctions, those offered by global company
Iwan (2012) are practically
useful.
•importers • International companies are
importers and exporters,
typically without investment
and outside of their home country;

exporters
•adapting their • Multinational companies have
investment in other countries,
but do not have coordinated
products and product offerings in each
services to country. They are more
focused on adapting their
each products and services to each
individual local market.
individual
local market
• Global companies have
invested in and are
present in many
countries. They
typically market their
products and services
to each individual local
market.
•an • More formally the
“enterprise transnational corporation has
been defined by the United
Nations Centre on
that engages Transnational Corporations
(UNCTC) as an “enterprise
in activities that engages in activities
which add value
(manufacturing, extraction,
which add services, marketing, etc) in
more than one country
value (UCTC, 1991).”
• An understanding of how global
corporations operate within
contemporary globalization
•US corporations
requires a brief recounting of some
of the major changes that have
taken place over the almost
operating
seventy years since the end of
WWII. As indicated above, US internationally
corporations operating
internationally had enormous
advantages in the immediate post-
had enormous
war period as they—virtually alone
in the world—emerged from the advantages in
war with their productive,
organization and distributional
capacities intact.
the immediate
post-war period
•contemporary • What would take shape as
the beginning of
globalization contemporary globalization,
however, dates from the
economic recovery of capital
structures in Japan and
Europe and the re-entry into
global markets of their
national corporations.
• By 1974 Barnet and Muller in a
path-breaking volume could both
define the MNC as a major
economic global actor and begin an
effective description of how this
particular corporate form was
coming to dominate various
aspects of global production and
exchange (Barnet and Muller,
1974). A considerable amount of
other scholarly work documents
various “waves” of global
corporate development through
the subsequent six decades to the
present.
 CONTINUED DEVELOPMENTS
• The overall structure of this
system would stay in place
•1970s and
and continue to develop 1980’s—a period
throughout the 1970s and
1980’s—a period that stands that stands
chronologically just prior to chronologically
three fundamental
innovations that have just prior to three
substantially changed the
character of the global
fundamental
corporation: innovations
• the advent and
impact of
digitalization and
instantaneous
global
communications;
•producer-
• the structural transformation of global
commerce from producer-driven
commodity chains to buyer-driven;
driven
commodity
chains to
buyer-driven;
• and the increasing
role performed
through the global
system by financial
elements and the
emergence of the
global financial
firm.
 three structural periods
• Investment-based • The post-war period can be
delineated in a number of
globalization (1950- ways. Geriffe for example
1970); Trade-based emphasizes three structural
periods: Investment-based
globalization (1970- globalization (1950-1970);
1995); Digital Trade-based globalization
(1970-1995); Digital
globalization (1995 globalization (1995 onwards.
onwards
• Within this analysis the nature
of the global corporation •extended
changes accordingly, being
driven in each case by its
evolving purposes and by its
reach and
extended reach and abilities
(Geriffe 2001: 1616-18).
abilities
•Foreign
• Another method of projecting this
growth is to examine the sources and
levels of Foreign Direct Investment

Direct (FDI) most of which was of corporate

origin.

Investment
•(FDI)
• As Hedley indicates,
in 1900 only
European
corporations were
major investors, to be
joined by some
American firms in the
1930s.
•FDI would • Citing UN data he dates
1960 as the major turning
triple point for FDI as the major
driver of extended global
corporate development. In
each subsequent decade
until the turn of the
century, FDI would triple
(Hedley 1999).
•foreign direct investment (FDI),
defined initially and primarily as the
entry of private capital from a source
external to a country into a receiving
country
ARGUMENTS FOR DEVELOPMENT
• Usually referred to in terms of
“out-ward” and “in-ward” flows, •“essential” for
supplies of FDI were viewed as
the major elements of global
the development
economic development, and of what was then
during various policy periods as viewed as the
“essential” for the development
of what was then viewed as the
“third” world, even if in reality
“third” world
the vast majority of FDI into the
1990s was between countries of
the “developed” world—primarily
North America, Europe and
Japan.
• Since 1964 the United
Nations Conference
on Trade and
Development
(UNCTAD) has
focused on the
various roles that FDI
plays in the
development process
•“a qualitatively • During the period 1985-1990 FDI grew at
an average rate of 30% a year. One
result, unsurprisingly, was the landscape
different set of of corporate units and their relationship to
each other. DeAnne Julius indicates that
linkages” was the expansion of FDI, inter-corporate
alliances, and intra-firm trade during this
created among period reached a level at which “a
qualitatively different set of linkages” was
advanced created among advanced economies
(Julius 1990). It was estimated that some
20,000 new corporate alliances were
economies formed just in the period 1996-1998
(Gilpin, 2000: 170).
• The investment-based period was
dominated by producer-driven • older manufacturing
commodity or value chains, which in companies wrought by
turn tended to be dominated by firms what was viewed as
characterized by large amounts of
concentrated capital focused on large- the progressive “de-
scale or capital-intensive
manufacturing or extractive industries. industrialization”
The organization of the dominant
global firms during this period was
powerfully influenced by the
transformation within national
economies of the older manufacturing
companies wrought by what was
viewed as the progressive “de-
industrialization” of these economies
through wide-scale off-shoring of labor
applications and its related costs.
 • This progressive shift in the silting
•“national firms of manufacture transformed the
dominant manufacturing firms of
operating these older developed companies
into more fully extended and

internationally”
integrated organizational forms
that moved many such firms from a
self-conscious understanding of
themselves as “national firms
into more operating internationally” into more
authentically global firms that
authentically required extensive corporate
integration of their activities
global firms throughout the world.
• Many corporate structures,
especially those in the United •“fordist”
States, operating within the
frame of the producer-driven
commodity chain had been
management
organized by what came to be
recognized as “fordist”
principles
management principles. U.S.
firms in particular had sought
to transport these models
abroad to their international
manufacturing holdings.
• new models of • The emergence of Japan as a
major producer nation,
effective production especially of automobiles and
focused especially consumer electronics from the
1970’s on, brought onto the
on quality and scene new models of effective
regimes of flexible production focused especially
production on quality and regimes of
flexible production—a move that
was echoed within European
firms rejoining the global
commodity chains.
• These activities were experienced by U.S.
firms as unwelcome challenges to their • “re-inventing” of the
previously virtually unchallenged positions
on product design, production efficiency,
American business
and quality—and ultimately on the ability model, especially the
of these corporate structures to maintain
their accustomed returns on investment. industrial model
The result was a progressive “re-
inventing” of the American business
model, especially the industrial model —a
challenge that would dominate the
curricula of U.S. business schools for over
two decades (Risi 2005) and which is also
continuously associated with the global
value shift from manufacturing capital to
finance and human capital in
progressively networking societies
(Castells, 2009).
Part Three: What is different about this
phase of global corporate development?
• The so-called “developing
economies”, and especially •Brazil, India and
those of Brazil, India and
China—the so-called BRICS
China—the so-
economies, have become the called BRICS
most dynamic sector of global
corporate growth,
represented in part by their
significant FDI over the three
decades.
• The relative size, growth and range of activity of global corporations from
the emerging economies suggest that they are on a trajectory that will
soon situate them firmly within those of the historically more developed
economies. The number of global corporations from the emerging market
economies listed in the Fortune Global 500, which ranks corporations by
revenue, rose from 47 firms in 2005 to 95 in 2010. These companies have
also become active in the broad pattern of global mergers and acquisitions
(M&A), a primary vehicle by which corporate concentration takes place. To
cite Ahern: “In 2010 these companies accounted for 2,447 acquisitions, or
22% of global M&A transactions, which is up from 661 acquisitions, or 9%
of total M&A acquisitions, in 2001. Of the 11,113 M&A deals announced in
2010, 5,623 (50%) involved merging market companies, either as buyers or
as take-over targets of MNCs in advanced countries” (Ahern 2011: 23).
• The fact that the global
economic slowdown
resulting from the financial
crisis of 2007 has had a
lesser impact on many
developing economies,
especially the BRICS,
indicates the extent to
which they have become a
new and important source
of capital within the global
system.
• Capital flows in general over
the past decade and a half •South-North
have begun to change from
the dominant North- capital flows
North/North-South dynamic to
one in which South-South and are significant
South-North capital flows are
significant (Rajan 2010) with
most of the South-North
capital flows coming from
China and India
•Examples
include China’s
Lenovo
corporation’s
purchase of
IBM’s PC
business
• India’s investment
in various
historically British
firms including
Jaguar Land Rover
(Economist, 2011)
• The importance of global
corporations in Brazil, India •40% of the
world’s
and China to the current and
projected global economy is
singular. With 40% of the
world’s population the BRICS
represent a primary force in
population
both global production and
consumption.
• Hawksworth and
Cookson predict that
“middle class”
consumers in China and
India will grow from
some 1.8 billion in 2010
to 3.2 billion in 2020 and
4.9 billion by 2030
(2008).
• The relative import of their global
corporate cultures can be gauged in
part by the fact that in 2012 global
•account for a
corporations in China made up 73 of
the largest in the Fortune 500 list
(CNN Money 2012), and whereas
near doubling of
Brazil and India with 8 apiece
currently account for a small share of their share of
such corporations, emergent market
countries are projected to account for
a near doubling of their share of world
world trade over
trade over the next 40 years, reaching
nearly 70% by 2050 (Ahern, 2011). In the next 40 years ,
1998 only one of the top 100 global
corporations was located outside the
US, Europe or Japan (Oatley 2008).
reaching nearly
70% by 2050
END