Topic: Transnational Corporation
Group:
• Nguyen Vu Hong Minh BAIU08019
• Tran Thi Lan Phuong BAIU08065
Principle of comparative advantage: “Two
countries can both gain from trade if, in the
absence of trade, they have different relative costs
for producing the same goods” ( David Ricardo)
Transnational corporation: “corporations which
operate in more than one country or nation at a
time and have become some of the most powerful
economic and political entities in the world today.”
In 1970, 7.000 TNCs
In 2008:
79.000 TNCs, more than 790.000 foreign
affiliates( UNCTAD)
Total sales of TNCs ~ $ 31 trillions
The value added ( Gross product) of foreign affiliates
worldwide ~ 11% of global GDP in 2007
The number of employees rose to some 82 million
85 % TNCs in the Triad (European Union, Japan
and the United States), only 5% in developing
countries:
Six industries dominated: motor vehicles,
pharmaceuticals, telecommunications, utilities,
petroleum, electrical/electronic equipment
Top 100 TNCs account for 11 percent foreign
assets, 16 percent of total sales, 12 percent of
total employment.
