poli sci notes 11-14 - Adam Caplan 11/14/07 Poli Sci Notes...

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Adam Caplan 11/14/07 Poli Sci Notes Multinational Corporations o What is a multinational corporation? Must have operations in more than 1 country o Corporation Separation between management and ownership Some facts about multinationals o Accounts for 25% of world production o Accounts for 2/3 of world trade Intra-firm trade is 1/3 of world trade o Most multinational are in rich countries Slowly changing Most investment is in other rich countries Foreign Direct Investment (FDI) o The investments of multinational corporations General Motors building a factory in Malaysia Citigroup opening a bank in Brazil Some facts o World FDI is increasing o Most FDI is between rich countries Citigroup o Operations in 100 countries o Total of 145 million accounts o Employs 230,000 people Why do Multinationals Invest in Foreign Markets o Location Advantages o Market Imperfections Location Advantages o Transportation Costs o Natural Resources o Labor Costs/Productivity
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This note was uploaded on 04/10/2008 for the course POLI SCI 103B taught by Professor Jensen during the Fall '07 term at Washington University in St. Louis.

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poli sci notes 11-14 - Adam Caplan 11/14/07 Poli Sci Notes...

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