A global corporation is a multinational enterprise or multinational corporation with extensive operations in multiple foreign countries (https://books.google.com/books?id=rk4xL2XNrocC&pg=PR25&lpg=PR25&dq=management+schermerhorn+11&source=bl&ots=qHx9ciWGF9&sig=SbeMzyy-AxqPTSxicYMlUzbb2KY&hl=en&sa=X&ved=0ahUKEwjNjrrLpNnTAhVkzlQKHaWYC8MQ6AEIRjAE#v=onepage&q=management%20schermerhorn%2011&f=false).
Global businesses are under global management. There is no room for errors. Bad business is challenged by bad press, public criticism, damaged reputation, and consumer defections. As we delve deeper into globalization, interdependence among elements stemming from all over the world, we have to accurately reference the global economy. Once there is an accurate interpretation of the global economy, goals can be easily achieved. Currently, China has quite a few astonishing numbers in the global economy.
China Global Manufacturing Exports:
-70% worlds' umbrellas
-60% worlds' buttons
-72% United States' shoes
-50% United States' appliances
-80% United States' toys
Why pursue international business? Great question.
-Profits- global operations offer new and greater profit potential.
-Customers - global operations offer new markets to sell products.
-Suppliers - operations offer access to new products and services.
-Capital - global operations offer access to financial resources.
-Labor - global operations offer access to lower labor costs.
-Risk - global operations spread assets among multiple countries.
G.E. and Exxon Mobil are global and recognized as transnational corporations. Transnational corporations operate globally without a strong national identity, and with a worldwide mission. Global corporations can benefit host countries by offering broader tax bases, new technologies, and employment opportunities.
The size and presence of the GCs can work in the negative direction, too. GCs can cause problems for host countries if they interfere in local government, extract excessive profits, and dominate the local economy. There are also laws against GC economic interference. The US Foreign Corrupt Practices Act prohibits American multinational corporations from engaging in bribery and corrupt practices abroad.
The Foreign Corrupt Practices Act is the jewel in the crown of America’s fight against international business bribes and corporate favors. The FCP Act intended to promote American business and foreign-policy ideals around the world, and give US companies a tool to battle corruption abroad. It has also helped other countries crack down on bribery, and has extracted billions of dollars in fines (https://qz.com/927217/one-of-the-worlds-best-weapons-against-bribery-and-corruption-is-under-threat-from-trump/)
Nike had its brand image hugely damaged through utilizing "sweat shops" and low wage workers in developing countries. Maintaining the highest ethical standards while operating in developing countries is an important consideration for all GCs. These accusations began in the 70's, and continued on. In 2005, Nike became the first in it's industry to publish a complete list of the factories it contracts with. Nike continues to post its commitments, standards, and audit data as part of it's corporate social responsibility reports (http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5).
Although they're humongous, GCs can be controlled. Fortune magazine ranks these GCs on the Global 500 list.
Global 500 Top Ten: (http://fortune.com/global500/2015/)
The Global 500 companies on this list are ranked, via fortune.com, by total revenues for their respective fiscal years ended on or before March 31, 2015. All companies on the list must publish financial data and report part or all of their figures to a government agency.
Walmart- Bentonville, Arkansas
Sinopec Group- Beijing, China
Royal Dutch Shell- The Hague, Netherlands
China National Petroleum- Beijing, China
Exxon Mobil- Irving, Texas
British Petroleum (BP)- London, Britain
State Grid- Beijing, China
Volkswagon- Wolfsburg, Germany
Toyota motor- Toyota, Japan
Glencore - Baar, Switzerland
A global corporation, also called a multinational company, is a business that operates in two or more countries.
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