How "Global" is the Global EconomyKirk's Weblog : Weblog

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How "Global" is the Global Economy

Everyone thinks we live in a global economy. However of the top 500 Multi-National Enterprises (MNEs) only 1.8% are truely global. There are four types of MNEs:



Global: Sales of 20% or more in each of the three regions, but less than 50% in any one region



Bi-Regional: 20% of sales in at least two regions, and less than 50% of sales in their homw region.



Home Region: At least 50% of sales in their own region



Host Region: Over 50% of sales in a region other than their own



Based on 2004 data, of the top 500 MNEs 1.8% are global, 5.0% are bi-regional, 2.2% are host region and 64.% are home region orientated. For the remainder there is insufficient data to classify. Therefore home region still dominates.



Of the top 500 MNEs the only true "Global" companies based on the above definition are:



IBM

Sony

Royal Philips

Nokia

Intel

Canon

Coca-Cola

Flextronics

LVMH



Home region based MLEs still dominate the world economy and include companies such as:



Wal-Mart

GM

Ford

GE

Mitsubishi

Hitachi