Fire / Feu

                     

 

What is a supercorporation?
It is simply a really big company, or more technically, a human organization oriented around the extraction of surplus value. The only reason they exist is to make money. They may tell you that there are other reasons for their existence, like the product is integral to our lives, they are helping people in need, etc.. but really there is not any other reason. The president of GM was heard to admit that the company was "Not in the business of making cars, but in the business of making profit."

These days, companies are getting bigger and bigger. This leads to a monopoly. 
Certain companies come to dominate the landscape, region, sector of economy, industry or any combination. Some are so big they make more money than most countries. 
For instance:

  • 51 of the top 100 economies in the world are Trans-National-Corporations (TNCs)

  • 70 percent of global trade is controlled by just
    500 corporations

  • the 10 largest corporations’ revenues are 801 billion, 
    more than the hundred smallest countries

How does such a monopoly come to be?

It can be horizontal–which means across industry, within different sectors. For example, Irving is involved in retailing, paper production, mini homes, newspapers, kleenex, toilet paper; many different sectors.

It can also be vertical–which means a company dominates parts of one industry. Again, take Irving (they are masters). They control supply, processing and harvesting of wood–all parts of the same industry.

When companies are this big, they usually become MNCs (multinational corporations). This means most of the corporation’s operations are actually outside of the parent country. For example Nike, while based in the US, does most of its manufacturing in Asia.

In this way: Supercorporations are the agents of globalization.

Previous  |  Next