Presentation on theme: "What is a CORPORATION?. Definition : In terms of the New World Order, the largest Transnational Corporations (TNCs) are central players. They influence."— Presentation transcript:
Definition : In terms of the New World Order, the largest Transnational Corporations (TNCs) are central players. They influence the policies of governments worldwide; they help to order the agenda of the World Trade Organization. They influence the destinies of individual economies in the developing world (LEDCs), they set wage-levels, which can cause the first world (MEDCs) to bend to their demands, and so on. From: Douglas Lewis University of Sheffield, UK
Some facts about corporations Of the world's 100 largest economic entities, 51 are now corporations and 49 are countries. Sources: Sales: Fortune, July 31, 2000. GDP: World Bank, World Development Report 2000. RankCountry / Corporation GDP / sales ($million) 1United States8,708,870 2Japan4,395,083 3Germany2,081,202 23General Motors176,558 24Denmark174,363 25Wal-Mart166,809 26Exxon Mobil163,881 27Ford Motors162,558 33Saudi Arabia128,892 42Portugal107,716 43Royal Dutch Shell105,366 53IBM87,548 …far away…Afghanistan8,800
How it works: the key corporation members : The Shareholders The Board of Directors Chief Executive Officer (CEO) Managers Employees Invest in the corporation by buying stocks* Accountable to the shareholders Select Selects Responsible for running the company Makes all the major decisions Accountable to the Board of Directors
The AIMS of a corporation: Make lots of profit for the shareholders ! How? By buying stocks at low prices and selling at high prices.