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Comment on survey


Multinational Business Enterprises: A New Category of International Organizations (Part #6)


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From Table 1 there are 2991 parent companies in 14 European countries and the U.S.A. with affiliates In one foreign country only, and 7045 with affiliates in one or more. Of these parent companies, U.S.A. parents constitute respectively 37 % and 40 %. There are 595 parent companies with affiliates in 10 or more foreign countries and 166 with affiliates in 20 or more. Of these parent companies, U.S.A. parents constitute respectively 45 % and 52%. It is interesting to note that the number of the intergovernmental and international non-profit organizations listed in this Yearbook as having headquarters in the Table 1 countries is 50% of the total of parents companies with headquarters in the same countries [comparing companies in at least three countries on the assumption that these can be considered equivalent to the minimum membership criterion of the other organizations).

The 7,046 parent companies have affiliates in 26,393 countries, i.e. each company has affiliates in an average of 3.75 countries. (2.48 in the case of European companies only). The European parent companies included in the Table constitute approximately 40 % of those surveyed. The remaining parent companies only have affiliates in their own countries.

From Table 2 the distribution of the links of the parent companies with foreign countries is 53 % Europe, 11 % Africa, 25 % America, 9% Asia and 5% Australia. A separate study of foreign enterprises in Japan gives some indication of the validity of the figures in this Table. This study estimated that ' almost 800 ' foreign enterprises had been set up in Japan by 1966. Table 2 gives a corresponding figure of 465. The difference is probably due to implantations from countries other than those for which information was availabe, and also to the inevitable difficulty of obtaining information and ensuring that it was kept up to date. (One difficulty in the survey which affects the results is the differences in the definition of a country, e.g.Portuguese parent companies do not consider Angola as a separate country, whereas companies operating from other countries would treat Portugal and Angola as separate countries. No attempt was made to allow for this.)