Globalisation and Connectivity Globalisation is nothing if it is not about connections: Economic, social, cultural. People, things, ideas. Tangible and

CapitalTrade

Corporations

Globalisation and Connectivity

Globalisation is nothing if it is not about connections:Economic, social, cultural.

People, things, ideas.Tangible and intangible.

Known and unknown.

One of its defining attributes is the predominance of trade and trading:

In things.In people.In capital.

And one of its greatest challenges is whether this trade leads to social and economic development.

CapitalFinancial capital: money, in all its forms.

Economic capital: what gets bought with the money.

Social (overhead) capital: society’s infrastructure.

Human capital: people and their potential.

Natural capital: Everything not produced by humans.

TODAY ONLY!

Who’s worth what, where, when, how and why?

Who’s Worth What?

Global GDP in Millions of Current Dollars 2012Where? How much? In words…

World $72,440,448 ($72.440 trillion)United States (1st) $16,244,600 ($16.244 trillion)Canada (10th) $1,821,424 ($1.821 trillion)Sub-Saharan Africa $1,307,585 ($1.307 trillion)Low income $504,431 ($0.504 trillion)Lower middle income $4,823,542 ($4.823 trillion)Middle income $22,249,908 ($22.249 trillion)High income $49,717,633 ($49.633 trillion)

http://data.worldbank.org/indicator/

19611965

19691973

19771981

19851989

19931997

20012005

2009$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

Per C

apita

$U

S Co

nsta

nt 2

005

GDP Per Capita 1961 to 2012 Constant Dollars


Income inequality grows

Canada

High Income

World

Middle Income Low Income

19611965

19691973

19771981

19851989

19931997

20012005

2009

-3.50

-1.50

0.50

2.50

4.50

6.50

World Linear (World) High IncomeLinear (High Income) Middle Income Linear (Middle Income)Low Income Linear (Low Income)

Perc

enta

geGDP Growth Rates 1961 to 2012

(based on 2005 constant U.S. dollars)


Oil CrisisLatin

American debt crisis

U.S. Savings & Loan crisis

Global financial

crisis

19611965

19691973

19771981

19851989

19931997

20012005

20090.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

United States High Income Middle Income Low Income

Perc

enta

ge S

hare

of W

orld

GD

PGDP Percentage Shares 1961 to 2012

(based on 2005 constant U.S. dollars)

High income nations 2012 = 75.0%

Middle income nations 2012 = 24.5%

Low income nations 2012 = 0.7%

United States 2012 = 26.1%


Lowest Ten Per Capita GDP PPP 2012 International Dollars

Democratic Republic of the Congo $415Burundi $551Eritrea $557Liberia $639Malawi $753Niger $769Madagascar $962Mozambique $1,007Togo $1,034Guinea $1,051

International dollars are U.S. dollars at PPP. That is, what a U.S. dollar would be worth in that country if the cost of living were taken into account. If U.S. dollars

were used values would increase or decrease according to local cost of living.


Highest Ten Per Capita GDP PPP 2012 International Dollars

Luxembourg $88,286Macao SAR, China $86,341Qatar $82,106Norway $65,840Singapore $60,800Switzerland $53,283Brunei Darussalam $52,482United States $51,749Hong Kong SAR, China $51,103Australia $44,598Canada $42,533http://data.worldbank.org/indicator/

Capital Flows, Trade & Development

10

Globalisation and Connectivity

Globalisation is about connections.

It is about how national economies are woven into a global economy.

This happens in large part through flows of capital:

From nation to nation.From person to person.

Through and between TNCs.

Global Capital & DevelopmentComponents of capital flows:

Foreign Direct Investment (FDI)Exports and ImportsWorker Remittances

Trade, and Financial flows

Capital flows:Weave a web of development or dependency.

Drive the global economy, like it or not.Creates connectivity, possibly more than

anything else.

Does globalisation, through capital flows, improve people’s lives?

Some Definitions

Development refers to the qualitative aspect of the growth in a nation – how is wealth translated into

quality of life?

Not all economic growth leads to economic development (as when the benefit of growth –

money – gets filtered into the profits of TNCs, the pockets of a very few wealthy nationals, corruption,

or into military spending).

And not all development requires western style economic growth, though in the complete absence

of wealth not much can be achieved except exquisite levels of misery.

Dependency refers to the situation in which a nation/region loses control of its economic,

political, and often, national/regional, autonomy due to external demands from

other nations or IGOs to follow their policies in order to meet externally determined goals.

Like living at your parents’ home as an adult, you are dependent on your parent’s largesse

and governed by their rules.

Living With Parents - Dependency

Usually coupled with this is the dependency that arises from one or more of:

Facing a monopsony or oligopsony.Facing a product value-added differential.

Facing an already well developed global market place.

The bottom line is that, by definition, being dependent means losing independence, which all

nations have to do to a point but some must do to a fault – usually through no fault of their own.

All nations must trade to survive, and even careful ones can find themselves overtaken by circumstances

that at first may appear for the best.

Foreign direct investment is one of these two edged swords.

InvestmentFlows

Foreign Direct Investment (FDI)FDI is one of the most important roads to development

but often to dependency as well.

FDI is the capital (money and/or infrastructure) that one nation invests in another nation.

Globalisation is about the integration and homogenisation of global economies and two things

indicate this most strongly:

Has there been increasing FDI between economies, especially in the developing world?

Has there been increasing trade?

17

Types of Foreign Direct InvestmentPRIVATE SOURCES:

Investment made by transnational corporations (TNCs) investing in companies in a foreign nation, and…

Worker’s remittances, or the money that individuals send back to their families in their home countries

from the countries in which they work.

PUBLIC:Comes from predominantly GOs, IGOs, INGOs and may

be direct investment, aid, or loans, debt relief.

Shares have changed dramatically since 1970 when private and public were about equal. Now they are about 95% private with 28% as worker remittances.

18

FDI Summary Flows 2012 (millions of dollars) INFLOWS OUTFLOWS NETWorld $1,376,628.76 $1,395,985.74 $19,356.98Developed economies $560,718.10 $909,383.26 $348,665.16Developing economies $702,825.60 $426,081.84 -$276,743.75Least developed countries $25,703.03 $5,029.68 -$20,673.35Transition economies $87,382.04 $55,490.95 -$31,891.09

SHARE IN SHARE OUT NET SHAREWorld 100.00% 100.00% 0.00%Developed economies 40.73% 65.14% 24.41%Developing economies 51.05% 30.52% -20.53%Least developed countries 1.87% 0.36% -1.51%Transition economies 6.35% 3.98% -2.37%

Source: Calculated from UNCTAD, World Investment Report 2013 (http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Annex-Tables.aspx)

Amounts of Foreign Direct InvestmentFlows are large – about $1.3 trillion each direction in 2012.Developed economies are doing the most foreign investing.

Developing economies are getting the most investment.

19901992

19941996

19982000

20022004

20062008

20102012

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

Shares of FDI Flows 1990-2012

Share of Inflows To Developed EconomiesShare of Inflows To Developing EconomiesShare of Outflows From Developed EconomiesShare of Outflows From Developing Economies

Perc

ent

Developed nations have the highest inflows and outflows, but levels are declining.

Developing nations have the lower flows, but levels are increasing.

19901992

19941996

19982000

20022004

20062008

20102012

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

World Developed Developing

Perc

ent o

f GD

P

FDI Inflows as a Percent of GDP, 1990-2012

Indicates the integration of global economies as FDI weaves developed and developing economies together.

UNCTAD, World Investment Report 2013 (http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Annex-Tables.aspx)

Flows may be higher to and from developed nations, but

the proportion of GDP affected is about the same.

19921994

19961998

20002002

20042006

20080

50

100

150

200

250

More Favourable Linear (More Favourable)Less Favourable Linear (Less Favourable)

Num

ber o

f Pol

icie

sPRICE TO PAY?

Overall steady increase in # of policies favorable to FDI (such as free trade, reduced health

and safety regulations).

Policy Changes Related to FDI 1992-2008


19701973

19761979

19821985

19881991

19941997

20002003-5

5

15

25

35

45

55

65

75

Public Linear (Public) Private Linear (Private)Worker's Linear (Worker's)

Perc

enta

ge S

hare

23

Private FDI has increased from about 50% to almost 70% since 1970, with worker remittances accounting for about

28%. Public capital flows have decreased substantially to less than 10%

Capital Flows to Developing Countries 1970-2004


Summary: Foreign Direct Investment (FDI)Globalisation is about the integration and

homogenisation of global economies and two things indicate this most strongly:

Has there been increasing FDI flows between economies, especially in the developing world?

Answer:Yes, substantially so.

Now we will look at the next question:Has there been increasing trade?

24

Trade

TradeIf economies have been integrating through foreign

investment, as globalisation suggests that it has, then one of the things they must also do is trade –

otherwise dependency ensues.

Trade is measured by looking at imports, exports and the net balance between them.

Questions would be:Have imports and exports grown as a medium of

integration?

Are imports a growing share of GDP?

Are exports correlated with FDI?

26

19601963

19661969

19721975

19781981

19841987

19901993

19961999

20022005

20082011

1015202530354045505560

Merchandise Trade as a Percent of GDP

World High Income Middle Income Low Income

Perc

ent S

hare

Obvious increase in merchandise trade for all economies in relation to production – 17% to 49%

of GDP.


19611964

19671970

19731976

19791982

19851988

19911994

19972000

20032006

20092012

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

High Income Low Income Middle Income

Perc

ent o

f GD

PExports as a Percentage of GDP 1961-2012

(based on constant 2005 US Dollars)


Upward trend in ratio of exports to GDP indicates growing

importance of trade in relation to production.

19901992

19941996

19982000

20022004

20062008

2010$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Exports FDI

Mill

ions

con

stan

t 200

5 U

S do

llars

Value of Exports and FDI Inflows 1990 - 2012

UNCTAD, World Investment Report 2013 (http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Annex-Tables.aspx) and http://data.worldbank.org/indicator/

Relationship between FDI and exports is very strong (r=0.904). Both have been growing but the

magnitude of FDI much lower than that of exports.

http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Annex-Tables.aspx

TOP 20 EXPORTERS AND IMPORTERS (net loss) 2012Country Millions Country Millions

United States $1,847,433.71United States $2,234,464.11Germany $1,603,560.68Germany $1,375,918.17China $1,362,350.34China $1,101,465.92Japan $743,939.28United Kingdom $723,170.26United Kingdom $704,466.29Japan $662,005.30France $627,482.41France $660,378.31Netherlands $572,211.86South Asia $522,538.16Korea, Rep. $571,399.93Netherlands $506,221.71Italy $514,817.61Korea, Rep. $470,304.21Hong Kong SAR, China $475,867.09Canada $465,310.26Singapore $408,803.79Italy $464,501.87Canada $405,509.91Hong Kong SAR, China $463,257.24South Asia $372,571.30India $443,679.03Spain $361,309.16Singapore $357,952.28Belgium $354,106.14Belgium $340,517.62Russian Federation $321,314.79Spain $336,666.48India $318,368.12Mexico $335,919.19Mexico $303,769.67Russian Federation $330,662.59Switzerland $240,721.38Australia $241,251.01Sweden $215,658.58Brazil $229,818.45

Trade SummaryQuestions would be:

Have imports and exports grown as a medium of integration?

Yes, to a significant degree.

Are imports a growing share of GDP?Yes, almost doubling as a share of GDP

Are exports correlated with FDI?Very high correlations exist between exports and FDI,

illustrating that FDI and increased trade are integrating the economies of many parts of the world.

But not all.31

Courtesy of The Onion

What it is and what is doesCorporations:

Are legal persons with your rights and privileges.Have immunities and limited liability (you don’t).Can access huge amounts of resources.Have far reaching international territories.Control lobby groups and hence politicians and parties.Control media.Own legal firms.Create think tanks.Create research institutes.

Dartmouth College against Woodward, 4 Wheat. Rep. 626, 1819, Chief Justice Marshall:

[A corporation is] “…an artificial being, invisible, intangible, and existing only in contemplation of law.

Being the mere creature of law, it possesses only those properties which the charter of its creation confers

upon it, [emphasis added] either expressly or as incidental to its very existence. These are such as are

supposed best calculated to effect the object for which it was created.”

Landmark case that set the stage for the rise of corporations in the United States.

The Legal Case

"They have no soul to save, and they have no body to incarcerate.“

Baron Thurlow.

“Corporation: An ingenious device for obtaining profit without individual responsibility.”

Ambrose Bierce.

The Legal Case

Who’s WhoShareholders:

Own the company by owning shares.Vote according to how many shares they own.Seek to maximise their returns on their investment.Are protected against liability.

Managers:Must run the company according to the wishes of the shareholders and terms of the company charter.Are required by law to maximise returns to the shareholders, which usually means profits.Break the law if they pursue any action contrary to the ROI principle.Are protected against liability.

ExternalitiesThe cost or benefit incurred by a party who did not choose

to incur that cost or benefit.

Externalities can be positive or negative but negative externalities are the single most significant corporate

social impact on society.

Corporations exist to maximise profits by maximising sales and minimising cost per unit.

‘Externalising’ costs minimises them to zero, and some costs are easier to externalise than others.

Even costs as basic as waste disposal, health and safety can be externalised.

How it all works…• Corporations seek to externalize costs, but…• Externalities impact society, so…• Regulation controls externalities and …• Government controls regulation and …• Democracy elects government, therefore…• People regulate externalities. However by…• Partnering, lobbying, moving, threatening,

persuading, bribing, corporations seek to control government and …

• Thus seek to control regulation, thereby…• Increasing impact of externalities on people.

The larger the corporation and the wider its reach, the better it can externalise costs.

Enter the transnational…

The Nature of the Transnational Corporation (TNC)Corporations require free flows of the factors of

production to optimise their profits and externalise their costs.

The transnational corporation has managed to externalise many of its costs by internalising its

flows.

For example, taxes (a cost) on earnings that are reinvested can be externalised because they are not

paid by the corporation.

Pollution that is not regulated is a cost that is not paid by the corporation.

In both cases they do eventually get paid – by people.

Defining Transnationalism“Reaching beyond or transcending national boundaries.”

First used in the early part of the 20th century.

Internationalism deals with relationships between nations where territorial boundaries are respected because they

have to be.

Transnationalism deals with the interrelationships between and through entities regardless of territorial boundaries.

Concept is most useful in regard to the actions of the corporation who can:

• Internalise control and earnings;• Reallocate resources within the TNC;

• Influence domestic political decision making;• Guide foreign policy in the TNCs ‘ best interests.

RegionalMarket A

RegionalMarket D

RegionalMarket E

RegionalMarket B

RegionalMarket C

Nationalboundary

RegionalProduction

Facilities

Changing Structure of the Firm - The Single Unit FirmFamily owned, individual single product, single function, self contained firms located in exclusive regional markets. Simply flows of things and information, money. Typical of 1st and 2nd

industrial revolutions and small industries.

RegionalMarket A

RegionalMarket D

RegionalMarket E

RegionalMarket B

RegionalMarket C

HEADOFFICE

FUNCTIONS

Nationalboundary

RegionalProduction

Facilities

Changing Structure of the Firm - The MultidivisionalTight central control over regional markets, few decentralised regional

production facilities based on internal scale economies, two way flow of information and things – one way flow of control. Typical of 2nd and 3rd

industrial revolutions and large national industries.

RegionalMarket A

RegionalMarket D

RegionalMarket E

RegionalMarket B

RegionalMarket C

HEADOFFICE

FUNCTIONS

Changing Structure of the Firm - The Multinational

Nationalboundary

RegionalProduction

Facilities

Tight central control over regional and international markets, a few decentralised regional production facilities and subsidiaries based on

internal scale economies, two way flow of information and things – one way flow of control, limited national autonomy. Typical of 3rd industrial

revolution onwards.

NationalSubsidiaryProduction

Facilities

“Head Office”

role

Changing Structure of the Firm - The TransnationalLoose central control over international markets, many decentralised

international subsidiaries/affiliates based on internal scale economies, free flow of real time corporate and financial information through units allows

high level strategic control. Flows intangible (money decisions) and tangible (things). Typical of 5th and 6th industrial revolutions.

National boundaries

IGO structures (e.g. WTO)

Corporate ‘cloud’

How Many and Where?The following data explores how many companies exist and where they are, as well as some of their

effects on the global economy.

Much of this information is extremely difficult to obtain with any accuracy.

We’ll look at:

Mergers and acquisitions (M&A) data (related to FDI).Trends in ISO rated companies

Size of TNCs and their connections to nations.

The ISO

150 national standards organizations from around the world.

Oversees 15,000+ national standards regulations.

Grants the right to certify companies with the 9001:2000, 14000, 16949:2002, and 13485:2003

certificates.

Certificates verify that the companies bearing them are safe to deal with.

Growth in nations seeking ISO membership and companies wanting certification has grown very

quickly.

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20080

200000

400000

600000

800000

1000000

1200000

1400000

World Africa & West AsiaCentral & South America North AmericaEurope Far EastAustralia & New Zealand

Year

Num

ber o

f Com

pani

es

Growth in Europe and the Far East highest while growth in the Americas, Australasia,

Africa has been slower

Number of ISO Rated Companies 1994 - 2008

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Africa & West Asia Central & South AmericaNorth America EuropeFar East Australia & New Zealand

Perc

ent S

hare Share is increasing in

Far East

Share of ISO Rated Companies 1994 - 2008

How TNCs Control

Affiliates

Mergers & Acquisitions (M&A)

Size in relation to GDP(Power)

19901992

19941996

19982000

20022004

20062008

20102012

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Primary Manufacturing Services

Num

ber o

f M&

ANumbers of Cross Border Mergers and Acquisitions by

Economic Sector 1990-2012

What’s being sold?


9/11



19901992

19941996

19982000

20022004

20062008

20102012

-

1 000

2 000

3 000

4 000

5 000

6 000

Primary Manufacturing Services

Num

ber o

f M&

A

What’s being bought?

Numbers of Cross Border Mergers and Acquisition Purchases by Economic Sector 1990-2012




19901992

19941996

19982000

20022004

20062008

20102012

-$70,000.00

-$50,000.00

-$30,000.00

-$10,000.00

$10,000.00

$30,000.00

$50,000.00

$70,000.00

$90,000.00

Developed Developing Transitional

Mill

ions

Cur

rent

Dol

lars

Net of Sales Over Purchases of Cross Border Mergers and Acquisitions 1990-2012

More foreign control over economy

Less foreign control over economy




TNCsby the

Numbers

Variable Value (millions)Value (words)

Foreign as a Share of

Total

Foreign Assets $7,698,328.33($7.698 trillion)

59.95%Total Assets $12,841,545.79

($12.841 trillion)

Foreign Sales $5,661,953.32($5.611 trillion)

64.88%Total Sales $8,726,869.35

($8.726 trillion)

Foreign Employment 9,845,44358.34%

Total Employment 16,875,084

Top 100 Non-Financial TNC Assets, Sales, Employment 2012




TOP TEN NON-FINANCIAL TNCs RANKED BY FOREIGN ASSETS, 2013(Millions US Dollars)

Company Foreign Assets Total Assets Foreign as a % of Total

General Electric Co $338,156.58 $685,328.00 49.34%

Royal Dutch Shell plc $307,937.82 $360,325.00 85.46%

Toyota Motor Corporation $233,193.41 $376,840.66 61.88%

BP plc $270,247.26 $300,193.00 90.02%

Total SA $214,506.64 $227,106.79 94.45%

Exxon Mobil Corporation $214,348.67 $333,795.00 64.22%

Vodafone Group Plc $199,003.42 $217,031.18 91.69%

Chevron Corporation $158,864.91 $232,982.00 68.19%

Volkswagen Group $158,045.77 $409,257.20 38.62%

Eni SpA $141,021 $190,125 74.2%

GE has more value in assets ($685.3 bn) than 91% of nations

have GDP.

It amounts to about 37% of Canada’s GDP

Source: UNCTAD

TOP TEN NON-FINANCIAL TNCs RANKED BY FOREIGN SALES, 2013(Millions US Dollars)

Company Foreign Sales Total Sales Foreign as % of Total

Exxon Mobil Corporation $301,840.00 $420,714.00 71.74%

BP plc $300,216.00 $375,580.00 79.93%

Royal Dutch Shell plc $282,930.00 $467,153.00 60.56%

Volkswagen Group $199,128.90 $247,623.70 80.42%

Samsung Electronics $188,833.00 $209,727.00 90.1%

Total SA $180,439.95 $234,287.37 77.02%

Toyota Motor Corporation $170,485.86 $265,769.60 64.15%

Glencore Xtrata PLC $153,912.00 $232,694.00 66.1%

Chevron Corporation $132,743.00 $222,580.00 59.64%

Hon Hai Precision Industries $131,557.00 $133,362.00 98.6%

Wal-Mart Stores Inc $126,751.00 $446,950.00 28.36%

Exxon has more value in sales ($301.8 bn) than 88% of nations

have GDP

It amounts to about 23% of Canada’s GDP

Source: UNCTAD

TOP TEN NON-FINANCIAL TNCs RANKED BY FOREIGN EMPLOYMENT, 2013

Company Foreign Employment

Total Employment

Foreign as % of Total

Hon Hai Precision Industries 810 993 1 290 000 62.87%

Wal-Mart Stores Inc 800 000 2 200 000 36.36%

Nestlé SA 328 816 339 000 97.00%

IBM 332 213 466 995 71.14%

Volkswagen Group 296 000 533 469 55.49%

Carrefour SA 267 718 364 969 73.35%

Deutsche Post AG 261 047 428 129 60.97%

Siemens AG 250 000 369 000 67.75%

Tesco PLC 219 298 519 671 42.20%

Hutchinson Whampoa Limited 215,265 260,000 82.7

Wal-Mart has more employees than 41% of nations have population.

It amounts to about 6% of Canada’s population, 17% of Ontario, about

15 times that of PEI, AND about the same as Toronto and about half that

of the GTA.

Source: UNCTAD

And now for the BIG TNCs…

The Financials

TOP TEN FINANCIAL TNCs RANKED BY ASSETS, 2012

Company Assets(millions)

Employment # of Foreign

Affiliates

HSBC Holdings PLC $2,692,538.00 288,316 746

Deutsche Bank AG $2,653,053.45 100,996 1,031

BNP Paribas $2,514,570.09 198,423 723

Mitsubishi UFJ Financial Group $2,494,136.63 83,491 86

Credit Agricole SA $2,428,967.74 87,451 229

Barclays PLC $2,422,516.25 141,100 225

JPMorgan Chase & Company $2,359,141.00 260,157 219

Bank of America Corporation $2,209,974.00 284,635 138

Citigroup Inc $1,864,660.00 266,000 595

Banco Santander SA $1,673,876.86 187,233 301

That’s $2.692 trillion.

HSBC Holdings has more assets than the GDP of all but three countries in the world:

U.S.A. (15.2%)China (30%)

Japan (41.5%)

It is 3.7% of the 2012 global GDP.It is 1.4 times Canada’s 2012 GDP.

And it has 3.6 times the assets of G.E.

Top 20 Most Transnationalised Nations by

TNI, 2012

Refers to the home economy of the TNC, as found in the

top 100 TNCs list.

TNI, the Transnationality Index, is calculated as the

average of the following three ratios: foreign assets to total assets, foreign sales to total

sales and foreign employment to total employment.

Country Ave TNI

Belgium 92.8Luxembourg 91.1Canada 87.9Switzerland 85.9Hong Kong 80.9United Kingdom 78.9Sweden 75.4Austria 73.9Mexico 69.0Italy 66.6Australia 66.4France 65.3Germany 64.8Spain 61.1Russian Federation 59.6United States 57.0Japan 49.3Malaysia 35.1China 34.0Norway 28.6

Top 100 TNCs by Product 2012

Oil - 11 Chemicals – 3

Utilities - 11 Nonmetallic Minerals – 3

Motor Vehicles - 11 Retail – 3

Pharmaceuticals – 10 Transportation – 3

Telecoms - 9 Aircraft – 2

Electrical/Electronics - 7 Metal & Metal Products – 2

Food/Beverage – 7 Business services – 1

Mining – 6 Construction - 1

Wholesale - 4 Engineering – 1

Diversified – 4 Other consumer products - 1Source: UNCTAD

Comprise over 50% of all TNCs.

DEBT

Hi!

My name is

U.S.

Hi!My name is

Japan

Hi!My name is

E.U.

Sovereign Debt

20022003

20042005

20062007

20082009

20102011

20122013

20142015

20162017

20182019

0

20

40

60

80

100

120 External Debt as a Percent of GDP 2000-20191Pe

rcen

tage

Advanced Economies

EU

G7

Emerging Asia

Source: International Monetary Fund, World Economic Outlook Database, October 2014

12015-2019 forecasts

COUNTRY DEBT AS % OF GDP DEBT PER CAPITA GDP PER

CAPITALuxembourg 6878.4% $5,636,946.10 $81,951.79 Ireland 1136.6% $447,776.79 $39,397.74 Iceland 778.0% $321,410.68 $41,310.73 Malta 455.3% $123,783.79 $27,189.78 Cyprus 440.7% $81,265.17 $18,439.89 Switzerland 415.9% $191,527.25 $46,045.93 United Kingdom 401.2% $150,244.00 $37,447.26 Singapore 346.3% $210,874.17 $60,891.26 Belgium 337.7% $136,276.28 $40,356.53 Netherlands 335.4% $139,702.38 $41,648.81

Top Ten Debtor Nations, 2013There are currently 30 countries with a greater than 90% debt load to

GDP. Canada is #32 at 87.7%

Source: Calculated from IMF data.

http://www.imf.org/external/datamapper/index.php

Gross Government Debt Position, 2012


Net Government Debt Position, 2012



The slides that follow outline the global debt position after the financial crisis of 2008. I have left the slides there for your further

education and entertainment.

These slides will not be on any course exams.

Documents

Globalisation and Connectivity Globalisation is nothing if it is not about connections: Economic, social, cultural. People, things, ideas. Tangible and