Transnational Corporations and Their Magical Skill to Transform Everything Into Profit and Share This Profit With No One: Calling the Tune Without Paying a Piper

Transnational Corporations and Their Magical Skill to Transform Everything Into Profit and Share This Profit With No One: Calling the Tune Without Paying a Piper

DOI: 10.4018/978-1-5225-4966-6.ch003
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Multinational business has become not only the stimulus for economic globalization, networkisation of business environment and its fragmentation (which has nothing to do with political and/or administrative borders) but also the only truly competitive globally type of entrepreneurial activity. Through multinational systems of production & distribution today privatization is being carried out, taking into account the key advantages of globalization (which, within the multinational economic space turn into the hyper-advantages of businesses). At the same time, other processes are taking place, namely: nationalization of globally predetermined problems (economic, social, environmental and political ones) and also autonomism via economic networking of business and public administration. In this chapter, we consider the contemporary contents and the resource of global competitive advantages of multinational businesses (hyper-presence, hyper-competitiveness, hyper-positioning, hyper-mobility, hyper-perspective and finally – hyper-income). We also analyze the network instruments used in the formation of “internal market of multinational corporations” which is protected from nearly all external impacts and which is also using the marketing and organizational potentials of business environment networkization at the multinational level.
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Profit Immortalization: Transnational Resource

Hyper-income of a transnational corporation consists, first of all, of its capacity to concentrate and maintain the multiplier effect within its own production process in its full volume.

Once a client spends some money on an end product of a certain corporation, this spending causes the growth of intracorporate demand, in many cases it will be manifold higher than the initial spending of a consumer. And this is exactly where an additional economic stimulus for transnational activity arises. Today’s corporations have multibranch and differentiated structure mostly to maximize the positive consequences from this multiplier effect for one company.

Today any diversification activity of a transnational company would be aimed at merging more and more structural units which have direct connection to the key production of its leading enterprise and also, merging those, indirectly dependent from this key production. This targeted diversification of contemporary corporations is yet another proof that large business today has no intention to share, it will not give away even a dollar spent by its typical consumer. Simply because all these corporations are striving to maintain the maximum multiplier effect accumulated by the parent branch of a corporation.

If a transnational corporation has enough power to manage its multiplier effect, it is also able to increase its financial indicators, by means of circulating assets mostly.

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