lism throughout the world, and the evolution of computer/information technology, which made the world, once a diverse and antagonistic hodgepodge of countries, into one mass-marketable and more accessible group of people. This analysis will illustrate the role of MNCs in the modern world economy, giving illustrations of management successes and failures that many corporations have experienced in their goal of securing these foreign markets. The current transition from MNC to Global Corporation will also be analyzed along with global management standards. A conclusion will address the future of MNCs in light of the ever-developing global marketplace and economy.
US DIRECT FOREIGN INVESTMENT & TECHNOLOGY
Two developments over the past thirty years have combined to create a more homogenous and sensitive world of people, cultures and markets. One of these is the increased amount of foreign direct investment by America and other countries. Even though most Americans seemed in a general panic during the 1980s, over the fact that many American companies were being purchased by foreign investors (Firestone bought by Japan, Bloomingdales and Federated bought by a Canadian, Farmer’s Group bought by the British, Columbia Pictures Corp. bought by the Japanese, etc.), the fact remains that America still bought more of the “world” during the same period, “in 1987 the stock of American foreign direct investment (in factories, offices or brands, as opposed to paper assets) stood at $309 billion; foreign investment in America, despite the megabids of foreign investors, came to $262 billion...both had grown rapidly, but American investment grew faster...its absolute increase and its proportional increase (19%) were records,” (Editor, 1988: 71).
The other major change has been technology, specifically computer technology. Corporations went out of their way as technology improved to communicate with their customers regarding m...