Search icone
Search and publish your papers

Transnational corporations and emerging markets

Or download with : a doc exchange

About the author

General public

About the document

Published date
documents in English
term papers
10 pages
General public
0 times
Validated by
0 Comment
Rate this document
  1. Definition and overview
  2. Motivations of BRIC countries to invest in Africa
  3. Future
  4. Critical evaluation
  5. Sources and References

Before answering to the question, it should be interesting to define and analyze the question. Firstly, the acronym ?TNC? is used in the question. TNC means Trans-national Corporation. According to the United Nations, a trans-national corporation (or a MNE for multi-national enterprise) is ? a firm that engages in value added activities in at least two countries?. Foreign direct investments are the results of TNCs with inflows and outflows. According to the World Bank, foreign direct investments (FDI) are ?the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. Inflows and outflows are listed by countries, or by world regions (Asia, Africa, BRIC, etc.). The trends and figures are analyzed and compared by the UNCTAD (United Nation Conference on trend and development) run by Ban-Ki-Moon, the Secretary-General of the United Nations.

Secondly, the question is targeted on investments in Africa states. In order to well understand the context of the question, a macro-analysis and past history should be done. Africa is composed by 55 independent states and represents 20 % of the total worldwide land area. This is the second largest and populous continent. There are around one billion inhabitants in Africa (from seven billion worldwide). The continent can be divided into several unequal parts such as North (e.g. Algeria, Tunisia), sub-Saharan, South, East and West. All these parts are unequal on many points as for example number of inhabitant, wealth, or equipment. Moreover, Africa is the poorest and least developed continent in the world. This can be explained by its turbulent past. Most of African countries were under the colonial power of European countries. For example, France (in Algeria, Senegal, etc.), Britain (in South-Africa, Egypt, etc.) and other countries had power on colonized countries in the beginning of the twentieth century.

During this time, European countries exploited Africa's sources of raw material. Africa is full of natural resources such as cotton, copper, gold, maize, etc. These resources were bought at very low prices from farmers, then were shipped to home countries (France, Portugal, Great-Britain) and sold at expensive prices. According to Enoch K. Beraho (2005) this stage was the first of three stages on Africa's regional problems with colonizing countries. It started from 1845 and ended in 1995 by the apartheid of South Africa.

[...] There are many projects in Africa and they are mostly BRIC countries that do it. They bring their own skills and workers to Africa in order make the project reality. A Russian company won a contract from Libya to construct 550 km of rail link. And this is not the only example; Projects and contracts flow in the whole Africa. Algeria assigned $20 billion of contracts to Chinese company. Egypt and India are thinking of a partnership in the construction of a nuclear station. [...]

[...] This alliance owns many objectives such as promoting cooperation between each country, find a common interest concerned Africa, be more powerful in an international view, promote democracy, Human Rights, peace, security and stability on the continent. African- Union (2003). It launched in 2001 the New Partnership for Africa's development (NEPAD). This program had many goals such as to ?achieve and sustain an average gross domestic product (GDP) growth rate of at least 7 per cent per annum (p.a.) in order to reduce the share of Africans living in poverty by half, as well, attain other goals by the year 2015?. [...]

[...] The Northern and Southern Africa is the two best parts in Africa that make the best results. Central Africa and East Africa are the two parts that have more difficulties. These foreign direct investment are mostly made as a result of the abundance of natural resources and the size of the domestic markets. The trend of these foreign investments changed. Before 1990, it was mostly European Countries and America that invest in Africa. But since 1990, the trends changed. These foreign investments are mostly from BRIC countries. [...]

Similar documents you may be interested in reading.

Marketing strategies of IBM Global Service India

 Business & market   |  Marketing   |  Thesis   |  04/16/2009   |   .doc   |   54 pages

The emerging triad in the new global economy

 Economics & finance   |  Economics   |  Presentation   |  03/03/2011   |   .doc   |   7 pages

Top sold for marketing

Final Strategic Analysis Report BIC

 Business & market   |  Marketing   |  Case study   |  09/29/2010   |   .doc   |   39 pages

Analysis of marketing business "Smartbox"

 Business & market   |  Marketing   |  Case study   |  09/29/2010   |   .doc   |   41 pages