ROLE OF MULTINATIONALS

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ROLE OF MULTINATIONALS

• Day 7

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Agenda

• Example of work of a grant-giving agency
• US Agency for International Development
• Canadian International Development Agency
• Australian Agency for International Development
• Made in China
• Quick summary of Ch 11
• Group time

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Discuss issues raised in small groups

• How does this flattening affect specific
  industries, i.e. are the effects the same?
• Some have already been producing off-shore, e.g.
  car companies, so this should be a boost
• Some have not, so opportunities
• What is the ethical responsibility of a manager
  with an opportunity to offshore a portion of his
  or her business, at the expense of long time
  employees?
• Check out how products vary and remain the same
  as they go to different countries for example,
  yahoo and alibaba, cell phones, etc.

4
Ownership of Factories in China

• Presented by
• Sierra Hanna
• Curtis Monette
• Sean Krause
• Andrew Weekly

Paint Factory in China http//en.wikipedia.org/wik
i/ImageJotun's_paint_factory_in_China.jpg
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Purpose

• To examine who owns the manufacturing plants in
  China, the process in which companies received
  authority to run the manufacturing plants, and
  the conditions under which they run the plants.

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Who owns the factories in China

• Only 220 of the biggest enterprises in the
  manufacturing industry are directly controlled by
  the state according to a survey by the National
  Bureau of Statistics (Chinese State Owns Less
  Than Half Of Top 500 Manufacturing Companies)

http//www.task.com.tw/images/jpegif/china20facto
ry.jpg
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Table of Factories
Company Country or Origin Product(s) Location of Plant(s)
Anorad part of Rockwell Automation Shirley, New York Milwaukee, WI, USA Linear Motors Dongcheng District Beijing
Changan Ford Mazda Engine Company Ltd. (CFME) Dearborn, Mich. (Ford) Japan (Mazda) Engine production facility Nanjing, China
MAHLE Group Stuttgart, Germany Piston production plants Yingkou, China Nanjing, China Chongqing, China
LEESHR Sino-Korea joint venture company Auto Parts and Accessories CHANGSHU ECONOMIC DEVT ZONE Changshu Jiangsu, China
Evensun Co.,Ltd   Chemicals GuangDong , China
Nortel USA Communication Beijing
Cypress Industries Austin, Texas and Taipei, Taiwan, R.O.C. Plastics and Metal Product Dong Guan City and Shenzhen City, China
Intel USA Micro Processors Liaoning Province
Taiwan Semiconductor Manufacturing Co.  Taipei, Taiwan Computer chips Shanghai
Min Jen Enterprise Co., Ltd. Taoyuan, Taiwan LCD monitors and LCD TV monitors Somewhere in China
POSCO Pohang, South Korea Steel Beijing , Shanghai, Guangzhou, Wuhan, Shenyang, and Wanchai, Hong Kong
Ace Korea, lnc. Busan, Korea AKI-BOARD, AKI-TILE of 100 Natural Gypsum Ceiling Tile and MgO Board WUHAN and JANGSU
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Taiwan in China

• Designed by someone, somewhere. Sent
  somewhere. Assembled  Made somewhere.
• Apple, Garmin, Microsoft, Cisco, Nike, Sony
• Taiwan is known for its strengths in reliable
  sourcing, leading technology and complex
  integration-and they get all the jobs done in
  China.

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Taiwan in China

• Does the average consumer in the United States
  who buys an iPhone, an Xbox 360, a wireless
  router, or a Garmin GPS device know its from
  Taiwan?
• Designed by someone in the United States. Sent to
  Taiwan. Assembled  Made in China

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FDI in China
Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions) Top Sources for Foreign Direct Investment in China (US billions)
Country/Region 2001 2002 2003 2004 2005 2006
Hong Kong 16.7 17.8 17.7 18.9 17.1 17.8
Virgin Islands 5.0 6.1 5.7 6.7 9.0 9.4
Japan 4.3 4.2 5.0 5.4 6.5 6.0
South Korea 2.1 2.7 4.5 6.2 5.2 5.9
Taiwan 2.9 3.9 3.4 3.1 2.1 3.8
United States 4.4 5.4 4.2 3.9 3.1 3.4
Singapore 2.1 2.3 2.0 2.0 2.2 2.1
Germany 1.2 0.9 0.8 1.0 1.5 1.4
All Sources 46.9 52.7 53.5 64.0 60.3 63.4
Many foreign firms, including U.S. companies,
are registered in the Virgin Islands, Cayman
Islands, and Western Samoa for tax
purposes. Source U.S. Foreign Commercial
Service and U.S. Department of State
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Ch 11 - summary

• There are 7 rules proposed by Friedman.
• By groups, explain to the class what a rule means
  or suggests a company does and provide an example
  not in the book.

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Rules

• Dig inside yourself
• The small shall act big
• The big shall act small
• Collaborate
• Get regular x-rays
• Outsource to win, not to shrink
• Outsourcing is also for idealists

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Term Project

• Proposal due?
• Questions on what is required?
• Spend time organizing