Discuss the role of multinational corporations in the process of globalization.

Discuss the role of multinational corporations in the process of globalization.

1.0 Introduction

There were over 53,000 multinational companies, with over 450,000 foreign affiliates (according to the U.N). These had global sales exceeding $9.5 trillion. If we look at the largest economy in the world, U.S.A, if the parent or affiliate of the company acts as buyer or seller, then 99% of U.S.A’s international trade is MNC’s trade. This therefore has a clear impact on global trading and globalization. If we divide the top 100 MNC´s we can see that, a small number of MNC´s control the global markets of oil, foods, minerals, and a variety of agricultural products. While the rest play an important role in the globalization of production and services. They in turn control 20% of global foreign assets, and account for almost 30% of total world sales of all MNC´s. A firm that owns production, sales, and other revenue-generating assets in a number of countries, is the definition of ...