1. 1.Material 1

With a combined assets of $230.6 billion in 1990, Citigroup jumped to $668.6 billion in 1999 after merging with travel agents, nearly trebling. Before the merger of Boeing and McDonnell Douglas, Boeing’s assets were only US$ 12.6 billion in 1990 and reached US$ 36.6 billion in 1999 after the merger. After Boeing merged with McDonnell Douglas, there was no competitor in the aircraft manufacturing industry in the United States. People think that the United States is emerging as a “new monopoly economy.”

According to statistics, there were 575 joint research institutions officially registered in the United States between 1985 and 1995, and large companies such as General Motors, IBM, and AT& T is a participant in multiple research projects. Because their business is diversified and they participate in the joint research and development of many products, this provides them with opportunities to monopolize the technology market in many fields.

Material 2

In 1998, MNCs from developed countries accounted for $594.7 billion, accounting for 92 per cent of world FDI. In the same period, developed countries attracted $460.4 billion in FDI, accounting for 72 per cent of global FDI.

The United Kingdom’s investment in the United States in 1998 increased by more than eight times, and Germany’s increase by four times. The investment in these two countries accounted for 60 % of the foreign investment in the United States in 1998.

European investment in Japan surged in 1999. European investment accounted for 79 per cent of all foreign investment in Japan, compared with 33 per cent in the same period in 1998.

Material 3

The United States “Business Weekly” lists the 1,000 most valuable companies in the world in 1999 based on the market value of listed company stocks, of which 494 were in the United States, 19 more than in 1998 and 170 more than in 1990. The United States accounted for eight of the world’s top 10 profitable multinational companies in 1998.

Please answer:

(1) Analytical material 1. What are the two forms that Multinational corporations take today in pursuit of monopoly?

(2) According to Material 2.3, what are the characteristics of current MNC investment?

(3) By analysing the above, what are the objectives of MNC strategic partnerships?

1. 2.Why is trade taking place between countries? What is the explanation of international trade theory?