chapter 6 - GlobalCorporations Chapter6 MGMT650,Global

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Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 1 Global Corporations Chapter 6
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Dutch East India Company  The Dutch East India Company was a joint stock  company which monopolized the spice trade of the 17th  century. It established trading ports all over Asia. The 17th Century was a  golden age for the Dutch . The  Dutch controlled trade routes in the Baltic and the North  Sea. With the formation of the Dutch East India  Company in 1602, the Dutch revolutionized global  trade, establishing factories, ports and settlements all  over the Pacific. Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 2
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Dutch East India Company  Continued The Dutch East India Company peaked in  1669, when it employed over 10,000  soldiers, 40 warships and 150 merchant  ships. Internal struggles, coupled with  unrest in their settlements led to a decline  for the joint stock company.  Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 3
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East India Company 1. On 31 December 1600, a group of merchants  who had incorporated themselves into the East  India Company were given monopoly privileges  on all trade with the East Indies. 2. The oldest among several similarly formed  European  East India Companies , the Company  was granted an English  Royal Charter , under  the name  Governor and Company of Merchants  of London Trading into the East Indies , by  Elizabeth I  on 31 December 1600. Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 4
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East India Company  Continued 1. British statesman, Edmund Burke noted that the  powers of the Company ”have emanated from the  supreme power of this kingdom, they themselves are  responsible, their body as a corporate body,  themselves as individuals, and the whole body and  train of their servants are responsible, to the high  justice of this kingdom.” 2. It became a ruling enterprise, when one of its  military officials, Robert Clive, defeated the forces of  the Nawab of Bengal, Siraj-ud-daulah , at the Battle  of Plassey in 1757. Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 5
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Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 6 Charter Firms Firms which were  established by a  decree issued by a King or an emperor.
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Perspectives Do Charter Companies resemble today’s Corporations?  Say - Microsoft! - Toyota!  Wednesday, Septemb MGMT - 650, Global  Corporations, Chapter - 6 7
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MGMT - 650, Global  Corporations, Chapter - 6 8 The Emergence of Modern  MNCs: Two Perspectives MNCs are a response to the emergence  of a genuine world economy. MNCs are a form of innovation 
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chapter 6 - GlobalCorporations Chapter6 MGMT650,Global

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