GEOG 216 Lecture Notes - De Beers, System On A Chip, Kimberley Process Certification Scheme
23 Jan 2013
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Document Summary
Mnc: enterprise that engages in fdi + owns/controls value-adding activities in more than 1 nat. Involves flows of $ + direct organizational control fr/1 nat over production in another nat. Big companies throughout world transferring ideas, management styles, labour, materials, etc. Investment has physical presence (ex: buildings, technology, labour) Ex: firm in 1 nat buys controlling investment in another nat/firm sets up branch/subsidiary operation in another nat. Portfolio investment: $ moving around globally, purchase of loans, stocks, etc. usually short term. Location: home country = where mnc has hq / host country = where fdi directed. 70s: oil prices went up, companies had to close down, unemp, ppl felt doomed by mncs. 80s: ppl changed behave, started recycling, ppl took back s/control fr/mncs, mncs doomed. 90s: imp to get mncs into nat to create emp + continue devel ( we"ve boomed! ) Spread risk by operating in several nats simult.
