- and sovereignty
including material from
Global Business Today, 2nd Ed.
Hill, McKaig ... and Richardson
|The idea for
this chart comes from an article in Fortune magazine in July 2000.
The article in Fortune in turn was derived from statistics gathered
by World Bank, World Development Report 2000.
|2010 Update||MGTC46 student
Angelica C. in Jan 2010 updated the Top 100 Economies chart with figures
from the Fortune 500 companies list for 2009
and the 2008 GDP figures from the CIA Factbook www.cia.gov/library/publications/the-world-factbook.....
figures provided by MRK460 student
Alexandria Cortez P.
|Top Economies(2008) VS Annual Sales of leading companies|
|Royal Dutch Shell||356|
100 Economies (1999) versus Annual Sales of leading companies
(Corporations in bold)
|9||Canada||612,049.0||59||Nippon Life Insurance||78,515.1|
|16||Russian Federation||375,345.0||66||Matsushita Electric Ind.||65,555.6|
|23||General Motors||176,558.0||73||Deutsche Bank||58,585.1|
|26||Exxon Mobil||163,881.0||76||Czech Republic||56.379.0|
|27||Ford Motor||162,558.0||77||Dai-Ichi Mutual Life Ins.||55,104.7|
|28||Daimler Chrysler||159,985.7||78||Honda Motor||54,773.5|
|34||Finland||126,130.0||84||Bank of America||51,392.0|
|44||Venezuala||103,918.0||94||Sumitomo Life Insur.||46,445.1|
|45||Iran, Islamic Rep.||101,073.0||95||Bangladesh||45,779.0|
|46||Israel||99,068.0||96||Tokyo Electric Power||45,727.7|
|48||Nippon Tel & Tel||93,591.7||98||Total Fina Elf||44,990.3|
|49||Egypt, Arab Republic||92,413.0||99||NEC||44,828.0|
|50||Marubeni||91,907.4||100||State Farm Insurance||44,637.2|
To demonstrate the power
that a large company can have over a medium sized country, we searched
the newspapers for a story reflecting how a transnational corporation may
deal with a contentious issue that negatively effects the sovereignty of
|This Oct 2003
story tells how Ford is planning to cut jobs at a plant in a European country.
The President of that country has met with Ford officials but the cuts
are going to take place anyway.
Belgium is upset that they previously gave concessions to Ford in order that Ford would do business in the country and employee lots of people, but this has not been reciprocated as much as Belgium would have liked.
U.S. company in Mexico
|In Mexico, a
U.S. waste disposal company, Metalclad, was awarded $16.7 million in damages
after the state of San Luis Potosi blocked its waste site in the village
of Guadalcazar. Local residents complained the Mexican government was not
enforcing environmental standards and that the project threatened their
water supply. Metalclad's victory established that NAFTA's dispute mechanism
reaches to subnational governments, including municipalities."
"... in a small town in the
Mexican state of San Luis Potosi, a California firm -- Metalclad -- a commercial
purveyor of hazardous wastes, bought an abandoned dump site nearby. It
proposed to expand on the dumpsite and to haul toxic waste material and
other hazardous stuff and dump it in San Luis Potosi. The people in the
neighbourhood of the dump site protested. The municipality, using powers
delegated to it by the state, rezoned the site and forbid Metalclad to
extend its land holdings.Concerned about the potential hazards of the reopened
dump to the local water supply, the state conducted an environmental
impact study. As a result, it rezoned the property and forbid any extension
of Metalclad's land holdings. Metalclad, under Chapter 11 of the NAFTA,
then sued the Mexican government for damage to its profit margins
and balance sheet as a result of being treated unequally by the people
of San Luis Potosi. A trade panel, convened in Washington, agreed with
Japanese company in Canada, moving to Mexico
In the 1980's, a Japanese subsidiary of the Mitsubishi Electronics group bought the RCA TV plant in Midland, Ontario. Mitsubishi operated the plant successfully for some time until they suffered price competition from other picture tube makers who had operations in areas with lower employment costs. In the mid-1990's, in consideration of the NAFTA opportunities, Mitsubishi closed down the plant in Ontario, and moved operations to Mexico.
Russia cuts off natural
gas to Bulgaria
|UTSC MGTC46 student
Venelina G., in January 2009, emailed to say
I have some thoughts on globalization. Yesterday we mentioned quite a few things about globalization and some were cons, but we never discussed how reliable we have become on globalization. I have a particular example in mind.
pic provided by Veneline from her facebook page
am from Bulgarian background and my grandparents still live in Bulgaria.
Recently (Dec 31, 2008) Russia stopped all export of natural gas to the
European countries over a price dispute and the issue has not been
can't help but wonder how in the 21st century, with so much trade around
the world, it is possible for this to happen. As important and positive
globalization and international trade have been, countries have become
way too reliable on each other and have lost self sufficiency on all levels.
I think this is just about another negative side of globalization, as with
the uncertain political nature in the recent years countries should at
least make certain that if anything was to happen with them they should
have a way to cope with it, even
student Wendy L, in January 2009, emailed to say
"In the news today [2009 Jan 19] , I found an article, "Russia, Ukraine sign gas deal" which relates to the news that our classmate, Venelina, has pointed out earlier for globalization."
WTGR says "yes Wendy, the 'technological environement' (web based info) has resulted in a situation where the customer can be very much aware of what is happening, at the same time, people in the Ukranian diaspora can be made aware of the problems 'back home'.
|U.S. company closes Cdn subsidiary - job losses result||"Moores plant
closing costs 600 jobs"
students of international business in Canada might know that Montreal used to be the centre of the "made in Canada" clothing business and this recent situation of the Moores factory shutting is yet another example of how globalization has effected an industry sector that previously was a significant employer.
In 2005 (The Toronto Star reported) the Moores plant employed 1,000 people, by early 2008 the U.S. parent had cut that back to 600, and in March 2008 the remaining 600 lost their jobs too.
The U.S. parent, "Men's Wearhouse"
(in 2008) imports made in Korea for $99 as well as manufacturing in Mexico
and Eastern Europe.
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