What is a multinational company 2

globalization

According to assets abroad, 2015

Source: United Nations Conference on Trade and Development (UNCTAD): World Investment Report 2016
License: cc by-nc-nd / 3.0 / de /

Multinational companies (MNEs) are key players in globalization. The 100 largest MNCs - based on assets abroad - had total assets of 12.9 trillion US dollars in 2015, of which 62.0 percent came from abroad. The turnover of the Top 100 was 7.7 trillion US dollars, of which 64.2 percent was achieved abroad. And of the 16.1 million employees in the top 100 MNEs, 56.9 percent were under contract abroad. Overall, the international engagement of the MNE has increased significantly over the past two decades. In the group of the 100 largest MNEs in terms of assets abroad, the economic importance is again strongly concentrated: The top 10 MNEs alone accounted for 25.4 percent of assets and 25.1 percent of sales. In 2015, 92 of the 100 largest MNEs had their headquarters in an economically developed country. Eight MNEs had their headquarters in an economically developing country.

Facts

Multinational companies (MNEs) can be seen as the driving force of globalization as they have the organizational, technical and financial resources to implement a global-sourcing strategy. The MNEs have further expanded their market power through industry-internal mergers, company acquisitions and participations, and through the resulting market development, market security and cost savings.

The 100 largest MNCs - based on assets abroad - had total assets of 12.9 trillion US dollars in 2015, of which 8.0 trillion US dollars came from abroad (62.0 percent). The turnover of the Top 100 in the same year was 7.7 trillion US dollars, of which 4.9 trillion US dollars were achieved abroad (64.2 percent). Of the 16.1 million employees in the top 100 MNEs, 9.2 million were employed in foreign subsidiaries (56.9 percent).

In the group of the 100 largest MNEs in terms of assets abroad, the economic importance is again strongly concentrated: the top 10 MNEs alone accounted for 25.4 percent of assets (3.3 trillion US dollars) and 25.1 percent of sales (1 .9 trillion US dollars). The proportion of employees was 11.9 percent, only slightly above the average (1.9 million). Of the assets of the top 10 MNEs, 65.9 percent came from abroad, 66.5 percent of total sales were generated abroad and 57.0 of the employees in the top 10 MNEs were under contract abroad.

The transnationalization index (TNI), which measures a company's activities abroad, averaged 65.3 percent for the top 10 MNEs in 2015. The value of the TNI was highest for the telecommunications company Vodafone (81.2 percent) and the lowest for the energy company Chevron (53.7 percent). Overall, the international engagement of the MNEs has increased significantly in the last two decades: Between 1995 and 2000, the TNI value of the top 100 MNEs rose from an average of 51.5 to 55.7 percent and between 2005 and 2015 from 59.9 to 65.4 Percent. In 2015, 84 of the 100 largest MNEs had a TNI value of at least 50 percent.

Despite increasing transnationalization, the economic importance of the respective home market remains high for most companies. The main reason for this is that the international assets, the foreign turnover and the persons employed abroad are usually distributed over a large number of countries: The number of countries in which the top 100 MNEs were represented with subsidiaries in 2015 was average if more than 50.

The ten largest MNEs in 2015 were all headquartered in an economically developed country (USA (4), United Kingdom (3), Japan, France and Germany). Of the 100 largest MNEs, 58 had their headquarters in Europe in the same year (including 17 in the United Kingdom, 13 in Germany, 9 in France and 5 in Switzerland). 21 MNEs were headquartered in the US, 11 in Japan and one MNE each was based in Australia and Israel. Eight MNEs were headquartered in an economically developing country (China (2 plus Hong Kong), Brazil, Malaysia, Mexico, South Korea and Taiwan). In 1993 not a single company of the 100 largest MNEs had its headquarters in an economically developing country.

Of the 100 largest MNEs that had their headquarters in the economically developing countries, in South-Eastern Europe or the CIS in 2014, 33 were in China (including 17 in Hong Kong), 10 in Singapore, 8 each in India and Taiwan. 7 each on South Africa and South Korea and 5 each on Brazil and Malaysia. This was followed by Mexico (4), the United Arab Emirates (3), Russia (2) and eight other countries, each with an MNE.

Data Source

United Nations Conference on Trade and Development (UNCTAD): World Investment Report 2016

Terms, methodological notes or reading aids

The Multinational Enterprises (MNE) are sorted here according to the respective assets abroad. If another criterion is selected - for example assets in Germany and abroad or the number of employees - the ranking of the top 100 MNEs would change accordingly. The MNEs consist of a parent company and its subsidiaries. When assigning the MNE to the individual states, the headquarters of the parent company is decisive.

For some years now, UNCTAD has only been generating data on the Non-financial companies from. Data on the MNE in the financial sector you'll find here:
  • The top 50 financial TNCs - 2012
  • The top 50 financial TNCs - 2011

    To calculate the Transnationalization Index (TNI) the percentage share of foreign assets in total assets, foreign sales in total sales and the share of employees abroad in total employment of a company is calculated. The mean value of these three percentages is equal to the value of the TNI. The higher the value of a company's TNI, the more pronounced the company's activities abroad.

    To the Assets A company's intangible assets (concessions, licenses, patents, brands), property, plant and equipment (land, buildings, technical systems, machines, operating and office equipment), financial assets (company shares, participations, fixed asset securities), inventories (raw materials, goods), Receivables, securities, cash reserves and other cash and cash equivalents.

    CIS - Commonwealth of Independent States