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Poli Sci 2J03 - Feb 3 2014

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Political Science
Robert O' Brien

Started on: 02/03/2014 C LASS N OTES FOR : P OLI S CI 2J03 McMaster University, Fall 2013 M ONDAY , FEBRUARY 3, Y TNCs Vertical and Horizontal integration • VERTICAL  Owning share of mines, parts of the tire making • HORIZONTAL  Manufacturing in various parts of the world Toyota Company in Cambridge - Tariffs - Shipping costs and manufacturing costs - Access the Canadian or the United States Market - Good corporate citizens as creating good jobs for self-marketing campaigns. What is the structure of the Multinational  Is it vertical or horizontal and how does this affect what they do? Conglomerate - Some companies that produce a large number of products - Adopting strategies so that we can diversify the risks - Example in the production of Lipton and Knorr’s soup - If there is ever an issue in one category then we still have the sale in another category - Allows for diversification in a range of products. Commodity chains - The lifecycle of a commodity or product - Following the product all of the way through from the raw materials to the sale of it - Recycling part of it even can be traced - From design to natural resources to production to shipping to retail to disposal - Benetton & Nike  Marketing - What is the most profitable part of the value chain? o The value chain reveals how people are linked to products o Suicide rate at foxcon factories (Apple products) o Highlights struggle over value (value chain)  Lets us see where it is taking place - Some corporations have values larger than what is produced in some countries o In terms of mobilizing economic resources, these companies are particularly significant o Headquarters of the top 500 global firms o Most significant Fortune 500 companies o Concentration of companies in the United States and in Eastern Europe o Corporations are geographically and nationally concentrated Countries with top 500 companies - Top companies include the OECD - US, JAPAN, France, Germany, Britain, China Angie © McMaster University 1 Fall 2014 Started on: 02/03/2014 - Where is the power in the global economy? - Where are these important and influential companies that are making decisions Theoretical perspectives growth and impact - Causes of growth o Business studies o Explosion of companies going global  Economic stresses market • Things are happening outside of the company and causing the company to expand  Organizational stresses internal firm operation • Problems that the company is facing and the solution is to be found outside its nation state • Individual leadership of the company, that they have some particular reason for internationalizing or globalizing.  Motivational stresses individual drive - Impact on states - Why have we seen such massive growth in these companies and what is the impact they have on governments? International Political Economy - Different theories o LIBERAL  Vernon’s product cycle theory • Products go through a lifecycle and its natural where they’re produced changes • Products are produced in wealthy markets, for people who consume these products. • As time goes on it
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