Transnational corporations and emerging markets

Résumé du document

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.

Extraits

[...] Another part of African countries is Human rights. They are not applied everywhere, and even less in the work. Corruption is as well a large problem in Africa and should disappear if African wants to be credible in the investor's eyes. Another global image of Africa should be done and forget the mistakes done in the past. Sources and References: Books / Articles / Journals - The future of poverty and development in Africa Type: Research paper Author(s): John F.E. [...]

[...] BRIC people, mostly Chinese set-up in African countries, in order to make business and compete with local competitors. These can bring problems and conflicts. This part will be analysed in the critical reflexion. Source : Note analytique trimestrielle pour l'Afrique Future The partnership between BRIC countries is strong and intensifies years by years. Trade coalitions have been done in order to increase trade and foreign direct investment. Needs of BRIC countries are increasing, these means that trade will increase as-well. [...]

[...] They asked help from China and the Soviet Union. These two countries were communism and against the capitalistic Western (European) countries. This part is an important part for African countries and BRIC relationship. It was the beginning of a relationship between China and Soviet Union (actual Russia with some countries in Africa such as Ghana, South Africa or Zimbabwe. The situation was even worst and brutal than during the colonial era. With the help of China and Soviet-Union, Socialism or Marxism were adopted in these countries. [...]

[...] 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 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.). [...]

[...] Type: Research paper Author(s): Heidi Kreppel Source: International Journal of Emerging Markets Volume: 7 Issue: - Africa and China: A Strategic Partnership? http://www.ascleiden.nl/pdf/wp67.pdf - The china monitor : http://www.ccs.org.za/wp- content/uploads/2011/04/China_Monitor_MARCH_2011.pdf http://www.ccs.org.za/?cat=13&paged=2 - The china's trade and investment in Africa : http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Working %20126.pdf -UNCTAD report : http://www.unctad.org/templates/webflyer.asp?docid=15210&intItemID=5803&l ang=1 - Les BRIC en Afrique du Nord : les enjeux sont-ils en train de changer ? http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/the%20B RICs%20in%20North%20Africa%201er%20tr%C3%A9mestre_Mise%20en%20page%201.pd f Kisero, J. (2000), on COMESA tariffs'', The Nation Newspaper (Nairobi, Kenya) October. Yves Bourdillon, 2001-2011, la décennie Bric, Les Echos du 1/12/2011 Websites - China in Africa develops ties: http://news.bbc.co.uk/2/hi/africa/7086777.stm - China in Africa (blog): http://peacefulrising.blogspot.com/ - China in Africa, the real story: http://www.chinaafricarealstory.com/ - China's economic invasion in Africa http://www.guardian.co.uk/world/2011/feb/06/chinas-economic-invasion-of- africa - How China is taking Africa and wes should be worried : http://www.dailymail.co.uk/news/article-1036105/How-Chinas-taking-Africa- West-VERY-worried.html - China in Africa for business not aid: http://www.globalpost.com/dispatch/africa/100625/opinion-chinas-africa- business-not-aid - China in Africa myths and realities: http://aidwatchers.com/2010/02/china-in-africa-myths-and-realities/ - Wicutia what the focac : http://errwhateverz.com/2009/11/10/wicutia%E2%80%A6-what-the-focac/ - http://csis.org/program/africa-program - China is in Africa for business, not aid : http://www.globalpost.com/dispatch/africa/100625/opinion-chinas-africa- business-not-aid - Is the west losing out china in Africa ? [...]