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1、ChapterChapter11GlobalizationandtheMultinationalCorporation1.1INTRODUCTIONTheworldeconomyisbecomingincreasinglyglobalized.Campuseshavestudentsfrommanydifferentcountries.ThechipsinyourlaptopcomputermayhavecomefromKorea,anditssoftwarecouldhavebeendevelopedby
2、Indianengineers.Wehopethatduringyourstudybreak,yousavorsomeItalianespresso,althoughthe“Italian”coffeebeansthatwereroastedinItalywerelikelygrowninIndonesiaorBrazil.Theconceptofglobalizationreferstotheincreasingconnectivityandintegrationofcountriesandcorpora
3、tionsandthepeoplewithinthemintermsoftheireconomic,political,andsocialactivities.Becauseofglobalization,multinationalcorporationsdominatethecorporatelandscape.Amultinationalcorporation(MNC)producesandsellsgoodsorservicesinmorethanonenation.Aprototypicalexam
4、pleistheCoca-ColaCompany,whichoperatesinmorethan200countries.AnMNCprobablyproducesyourfavoritebrew.Forexample,Anheuser-BuschIn-BevisapubliclytradedcompanyheadquarteredinBelgiumwithoriginsdatingbackto1366.Overtime,thelocalBelgianfirmgrewintoanMNCcalledInter
5、brew,withfamousbrandssuchasStellaArtoisandLeffe.In2004,InterbrewandCompanhiadeBebidasdasAméricas(AmBev),fromBrazil,mergedtocreateInBev;andin2008,InBevacquiredAnheuser-Busch,thebrewerofBudweiserbeer,tobecomeAnheuser-BuschInBev.Thecompanyisnowthelargestbrewe
6、rintheworldbyvolume,producing91millionhectoliters(hl)ofbeerinthefirstquarterof2010.ThelinkbetweenalargeEuropeancompanyandalargecompanyfromanemergingeconomyisnocoincidence.RecentyearshaveseenstronggrowthinBrazil,Russia,India,andChina(sometimescalledtheBRICs
7、).Today,theBRICsaccountfor15%oftheworld’sgrossdomesticproduct(GDP)andmorethan50%oftheGDPofallemergingcountries.Theintegrationoftheseemergingeconomiesintotheglobaleconomywasforcefullyillus-tratedin2006,withthecreationoftheworld’slargeststeelcompany,ArcelorM
8、ittal.MittalSteel,anIndiancompany,tookoverArcelor,aEuropeansteelproducer,whichwascreatedbyanearliermergerofsteelcompaniesinFrance,Belgium,Luxembourg,andSpain.ThefactthatArcelor’smanagementatfirstopposedthetak
