The Age of Supranational Corporations

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• The Age of Supranational Corporations
• Feel the Force
• "GM can buy the State of Delaware, if DuPont
  allows." Which Bill is more powerful, Clinton
  or Gates?
• Which George is more powerful, Bush or Soros?
• Explosion of stockholding corporations in the
  past century/millennium - From Mahona of Genoa in
  the 11th century to supranationals of the 21st.
• Economic power of world's top 200 firms over
  30 of world economy
• US has about 3 million stock corporations
  (including over 60,000 computer-related
  companies).
• 50 of US population generates basic income from
  corporations.
• Mitsubishi Group gt S. Korea, Citi Group gt
  India, MS gt Holland, Wal Mart gt Turkey,
  
• 51 of the world's 100 largest economies
  corporations!

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• ATT has over 1 billion shares held by over 3
  million shareholders.
• Yahoo! has over 300 million users worldwide.
• PG's worldwide customers more than 4 billion
• Motorola has over 70,000 patents (getting 3 a
  day on average).
• MS annually spends 3 bil. on its RD only.
• Sony has over 1,000 subsidiaries all over the
  world.
• McDonald's has over 30,000 restaurants.
• IBM's international business accounts for 70 of
  its total business.
• Today, corporate products reach a greater
  number of people and corporate activities have
  greater influence upon the economy and society.
• From 3M to Microsoft, it is the corporation
  that advances our technology, innovation, and
  productivity.
• Equally important, it is the corporation that
  shapes the global culture. IBM computers, MS
  softwares, Toyota cars, McDonald's burgers,
  Coca-Cola drinks, Disney cartoons, Nike shoes,
  Harley bikes, Nokia cell phones...

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Global Market - A New Leviathan Sheer size of
global markets - 33 tril. Equity Market
(1999-end) - 20 tril. Debt Market - 1
tril./day Foreign Exchange Market - 30-100
tril. Derivatives Market Also rapidly growing
are global cyber markets linked through internet,
intranet, extranet, infranet, cybernet, ... Every
second, three new computers are connected to
Internet ? E-commerce!  The market will be more
integrated and gradually governed by the global
standards of the new borderless business. -
Global supercurrency system (dollarization or
'euro') - Global single interest rate
mechanism - Global single listing of
securities - Global unified accounting system
- Global management philosophy
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Implications Being assimilated and homogenized
by these global products on the one hand, the
world is also uncovering more about its diversity
through global business activities on the
other. -gt Need to take a crosscultural
perspective Corporations and their leaders
wield increasingly greater power and influence,
politically, economically, socially, culturally,
and otherwise.  Corporations increasingly
dictate government policies, such as taxation,
government spending/borrowing, labor,
unemployment, welfare system, interest rates,
banking, elections, environmental concerns,...
National gt International/Transnational/Multinatio
nal gt Supranational! Potential for further
growth of the corporate world is unlimited. -
Small governments, privatization, liberalization,
deregulation, - Advancement of technology and
science - venturing enterprises - Dividends from
the Cold War victory of the market economy -
Growth through MA's, takeovers, and other
restructurings - Integration of economies -
EC/NAFTA/MERCOSUR/ASEAN - Growth potential of
latent markets in China, Russia, India, Brazil,
and African nations
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Dark side of global markets - Increasing
riskiness in the form of natural volatility as
well as artificial volatility - Continuous
introduction of sophisticated products, devices,
tools, mechanisms, methodologies, and strategies
involving high-level mathematics, physics, ... -
neural network, genetic algorithm, data
visualization technique, chaos theory, ergodic
theory, ... - Exchange of different cultural
perspectives will necessitate a renewed infusion
of softer knowledge in psychology, sociology,
philosophy, history, and other behavioral
sciences. - Heightening competition at all levels
which will include the competition between
corporations and sovereign nations. Yet, the
inclusiveness of the global market will prohibit
any global-scale business or economy from opting
out of the system. - No choice but to follow the
rules of the global system. ? A New Symbiotic
Business Paradigm and World Order?!