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
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.
51 of the top 100
economies in the world are Trans-National-Corporations (TNCs)
70 percent of global
trade is controlled by just
the 10 largest
corporations’ revenues are 801 billion,
more than the hundred smallest countries
How does such a monopoly come
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
In this way: Supercorporations
are the agents of globalization.