Multinational corporations and global value chains

International political economy has become an ever-increasingly important topic in the world today. The rise of multinational corporations and global value chains has created a complex system that has a direct impact on the world’s economy, politics, and culture. Through continued research and analysis of this phenomenon, we can gain a better understanding of the implications of multinational corporations and global value chains and their effects on the global economy. By looking at the structure, strategies, and operations of multinational corporations and global value chains, we can begin to get a better understanding of their influence on the international political economy. These insights can help us to better comprehend the interconnectivity of international markets and the potential impacts of multinational corporations and global value chains on the global economy.

Definitions

An MNC, or multinational corporation, is a company that operates in multiple countries and has a global reach. These companies often significantly impact the global economy due to their size and reach. MNCs may own and manage production facilities in several different countries or have a more decentralized structure with various subsidiaries operating independently in different locations. MNCs can be involved in various industries, including manufacturing, technology, finance, and more. There are many examples of MNCs, such as General Electric, Coca-Cola, and Nestle.

According to Oatley, an MNC is a company that has ownership and manages production facilities in two or more countries. there are approximately 63459 parent firms that together own a total of 689520 foreign affiliates. These parent firms and their foreign affiliates account for about 25 per cent of the world's economic production and employ some 66 million people worldwide