經(jīng)濟學專業(yè)英語教程（第四版-下）課件：Multinational Corporations

《經(jīng)濟學專業(yè)英語教程（第四版·下）》

Text:MultinationalCorporations（跨國公司）1.Keywords2.Evolutionofmultinationalcorporation3.Definitionofmultinationalcorporation4.Impactofmultinationalcorporation5.Majordeterminantsofforeigndirectinvestment6.Questions1.Keywordsmultinationalentityextractiveindustrymultinationalcorporationethnocentricfirmpolycentricfirmregiocentricorgeocentricfirmforeignaffiliatecorporateheadquartercross-borderdealcompetitivepositiongovernment-erectedbarriercountry-of-originbuilt-inpositivestereotypeacquiringorestablishingfirmsintermediarygoodsjust-in-timelogisticssysteminvestmentclimateenvironmentalconstraintpoliticalriskpoliticalupheavallocal-contentrequirementexpatriateemployment2.EvolutionofmultinationalcorporationMultinationalentitieshaveplayedaroleininternationaltradeformorethan300years.ThebeginningsoftheseoperationscanbetracedtotheBritishandDutchtradingcompaniesand,aftertheirdecline,toEuropeanoverseasinvestments,mainlyintheextractiveindustries.ThephenomenonasitisknowntodayistheresultoftheleadtakenbyU.S.-basedcompaniesinthepost-WorldWarⅡperiodandlaterfollowedbyWesternEuropeanandJapaneseentities.Differenttermsaboundforthemultinationalcorporation.Theyincludeglobal,world,transnational,international,supernational,andsupranationalcorporation.Thetermmultinationalenterpriseisusedbysomewhenreferringtointernationallyinvolvedentitiesthatmaynotbeusingacorporateform.3.Definitionofmultinationalcorporation3.1UNdefinitionofMNC3.2QuantitativecriteriaforMNC3.3QualitativecriteriaforMNC3.4KeycriteriaforMNC3.1UNdefinitionofMNCTheUnitedNationsdefinesmultinationalcorporationsas“enterpriseswhichownorcontrolproductionorservicefacilitiesoutsidethecountryinwhichtheyarebased.”3.2QuantitativecriteriaforMNCThenumberofcountriesofoperationistypicallytwo,althoughtheHarvardmultinationalenterpriseprojectrequiredsubsidiariesinsixormorenations.Anothermeasureistheproportionofoverallrevenuegeneratedfromforeignoperations.Althoughnoagreementexistsregardingtheexactpercentagetobeused,25to30percentismostoftencited.Thedegreeofinvolvementinforeignmarketshastobesubstantialenoughtomakeadifferenceindecisionmaking.Severalnationsshouldbeownersofthecorporation.3.3QualitativecriteriaforMNCThebehaviorofthefirmisthedeterminingfactor.Ifthefirmistobecategorizedasamultinationalcorporation,itsmanagementmustconsiderittobemultinationalandmustactaccordingly.Intermsofmanagementphilosophies,firmscanbecategorizedasethnocentric(home-marketoriented),polycentric(orientatedtowardindividualforeignmarkets),orregiocentricorgeocentric(orientedtowardlargerareas,eventheglobalmarkets).Evenethnocentricfirmswouldqualifyasmultinationalcorporationsifproductionwerethesolecriterion.3.4KeycriteriaforMNCThefirmcontrolsitsproductionfacilitiesabroadandmanagesthem(anditsdomesticoperations)inanintegratedfashioninpursuitofglobalopportunities.4.ImpactofmultinationalcorporationTheimpactofmultinationalsvariesbyindustrysectorandbycountry.Inoil,multinationalcorporationsstillcommand30percentofproduction,despitestrongnationaleffortsbysomecountries.Similarly,thecontributionofmultinationalcorporations’affiliatesmayaccountformorethanone-thirdoftheoutputofthemarketingsectorincertaincountries.Theimportanceoftheworldmarketplacetomultinationalcorporationsalsovaries.Theforeignsalesshareoftotalsalesfortheworld’slargestindustrialcorporationshasincreasedsteadily.Thepercentagewillnaturallyvarybyindustry(forexample,oilcompanyratiosarewelloverhalf)andbythecountryoforigin.5.Majordeterminantsofforeigndirectinvestment5.1Marketingfactors5.2Barrierstotrade5.3Costfactors5.4Investmentclimate5.1MarketingfactorsMarketingconsiderationsandthecorporatedesireorgrowtharemajorcausesoftheincreaseinforeigndirectinvestment.Evenasizabledomesticmarketmaypresentlimitationstogrowth.Firmsthereforeneedtoseekwidermarketaccessinordertomaintainandincreasetheirsales.5.2BarrierstotradeForeigndirectinvestmentpermitsfirmstocircumventbarrierstotradeandoperateabroadasdomesticfirms,unaffectedbyduties,tariffs,orotherimportrestrictions.Inadditiontogovernment-erectedbarriers,barriersmayalsobeimposedbycustomersthroughtheirinsistenceondomesticgoodsandservices,eitherasaresultofnationalistictendenciesorasafunctionofculturaldifferences.5.3CostfactorsServicingmarketsatsizablegeographicdistancesandwithsizabletariffbarriershasmademanyexporters’offeringsinforeignmarketsprohibitivelyexpensive.Manymanufacturingmultinationalshaveestablishedplantsoverseastogaincostadvantagesintermsoflaborandrawmaterials.Foreigndirectinvestmentoccursnotonlyhorizontally,byfirmsacquiringorestablishingsimilarfirmsabroad,butalsovertically.Somefirmsengageinforeigndirectinvestmenttosecuretheirsourcesofsupplyforrawmaterialsandotherintermediarygoods.Thisusuallysecuressupplyandmayprovideitatalowercostaswell.5.4Investmentclimate5.4.1Definitionofpoliticalrisk5.4.2Formsofpoliticalrisk5.4.1DefinitionofpoliticalriskThegeneralattitudetowardforeigninvestmentanditsdevelopmentovertimemaybeindicativeofthelong-termprospectsforinvestment.Inmanycountries,foreigndirectinvestmenttendstoarousenationalisticfeelings.Politicalriskhastobedefinedbroadlytoincludenotonlythethreatofpoliticalupheavalbutalsothelikelihoodofarbitraryordiscriminatorygovernmentactionthatwillresultinfinancialloss.5.4.2FormsofpoliticalriskTaxincreases,pricecontrols,ormeasuresdirectedspecificallyatforeignfirmssuchaspartialdivestmentofownership,lo