indicators

multinationals

• 71% of all MNEs are based in rich countries. The 500 largest MNEs account for 25% of world product, and 50% of world trade. MNEs receive 80% of all payments for technology royalties and fees.

“The Tommy Hilfiger Corporation [is] headquartered in Hong Kong, incorporated in the British Virgin Islands, listed on the New York Stock Exchange, owned primarily by international institutional investors, held its annual meeting [of shareholders] in Barbados, sourced production to manufacturers in Mexico and Asia, licensed its name to producers globally, and retailed its ‘classic American
clothing’ in Europe and North America.”

foreign direct investments

financial markets

• Currency markets:
  – Only 10% are commercial transactions.
  – Discussion Question: What accounts for the other 90%? (answer: speculation);