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136-461: Mondelez International, Inc. ( / ˌ m ɒ n d ə ˈ l iː z / MON -də- LEEZ ), styled as Mondelēz International , is an American multinational confectionery, food , holding, beverage and snack food company based in Chicago . Mondelez has an annual revenue of about $ 26.5 billion and operates in approximately 160 countries. It ranked No. 108 in the 2021 Fortune 500 list of

272-638: A 'yellow', the second of the four possible ratings on the 2022 Chocolate Scorecard for Agroforestry i.e. 'starting to implement good policies'. In 2021, Mondelez International was named in a class action lawsuit filed by eight former child slaves from Mali (aided by International Rights Advocates) who allege that the company aided and abetted their enslavement on cocoa plantations in Ivory Coast . The suit accused Mondelez (along with Nestlé , Cargill , Mars , Olam International , The Hershey Company , and Barry Callebaut ) of knowingly engaging in forced labor, and

408-506: A 2016 study found that these tariffs had no impact on employment and wages in the US tire industry. In 2018, EU Trade Commissioner Cecilia Malmström stated that the US was "playing a dangerous game" in applying tariffs on steel and aluminum imports from most countries and stated that she saw the Trump administration's decision to do so as both "pure protectionist" and "illegal". The tariffs imposed by

544-531: A North American grocery company. The snack-food company, called Mondelez International, would be the legal successor of the old Kraft Foods, while the grocery company would be a new company, Kraft Foods Group . The split was completed in October 2012. It was structured so that Kraft Foods changed its name to Mondelez International and spun off Kraft Foods Group as a new publicly traded company. Kraft Foods Group later merged with Heinz to become Kraft Heinz . In 2014,

680-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

816-512: A class-complaint against Cargill, Mars, and Mondelez, alleging that: rather than honor the pledge that they made [to phase out by 2005 their use of the Worst Forms of Child Labor as defined by ILO Convention No. 182.], defendants and all of the other major chocolate companies, have done little to address the ongoing and pervasive use of child workers performing the worst forms of child labor on their sourcing plantations and have focused on misleading

952-498: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

1088-721: A fanciful modification of the word "delicious." The Mondelez International company manufactures chocolate, cookies, biscuits, gum, confectionery, and powdered beverages. Mondelez International's portfolio includes several billion-dollar components, among them cookie, cracker, and candy brands Belvita , Chips Ahoy! , Oreo , Ritz , TUC , Triscuit , Nabisco , LU , Sour Patch Kids , Barny , and Peek Freans ; chocolate brands Milka , Côte d'Or , Toblerone , Cadbury , Green & Black's , Freia , Marabou , and Fry's ; gum and cough drop brands Trident , Dentyne , Chiclets , Halls , and Stride ; as well as Tate's Bake Shop cookies and powdered beverage brand Tang . Mondelez Canada holds

1224-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1360-412: A free market, where there is no such total loss. Economist Stephen P. Magee claims the benefits of free trade outweigh the losses by as much as 100 to 1. Protectionism has been accused of being one of the major causes of war. Proponents of this theory point to the constant warfare in the 17th and 18th centuries among European countries whose governments were predominantly mercantilist and protectionist,

1496-547: A high-growth key player in the Central and Eastern European croissants and baked snacks category. On January 3, 2022, Mondelez announced that the acquisition was complete. In May 2022, it was announced Mondelez had acquired Grupo Bimbo 's confectionery business, Ricolino, for approximately US$ 1.3 billion. On May 10, 2022, Mondelez announced that it would sell its gum business, including Trident and Dentyne , in developed markets including North America and parts of Europe, as well as

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1632-518: A large amount of the cocoa used in chocolate produced by Mondelez and other major chocolate companies was grown illegally in national parks and other protected areas in Ivory Coast and Ghana . The countries are the world's two largest cocoa producers. The report documents how in several national parks and other protected areas, 90% or more of the land mass has been converted to cocoa. Less than four percent of Ivory Coast remains densely forested, and

1768-455: A limited set of circumstances and that trade policy will rarely be the best response to the problems [of globalization]". According to economic historians Findlay and O'Rourke, there is a consensus in the economics literature that protectionist policies in the interwar period "hurt the world economy overall, although there is a debate about whether the effect was large or small." Economic historian Paul Bairoch argued that economic protection

1904-487: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

2040-641: A significantly positive effect on economic growth . Some scholars, such as Douglas Irwin , have implicated protectionism as the cause of some economic crises, most notably the Great Depression . On the contrary, Paul Krugman , winner of the Nobel Prize for Economics, argues that tariffs had no negative impact during the Great Depression. Although trade liberalization can sometimes result in large and unequally distributed losses and gains, and can, in

2176-578: A temporary waiver to enable more widespread production of the vaccines, since suppressing the virus as quickly as possible benefits the entire world. The waivers would be in addition to the existing, but cumbersome, flexibilities in TRIPS allowing countries to impose compulsory licenses. Over 100 developing nations supported the waiver but it was blocked by the G7 members. This blocking was condemned by 400 organizations including Doctors Without Borders and 115 members of

2312-430: Is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth. However, protectionism can be used to raise government revenue and enable access to intellectual property, including essential medicines. Protectionism is frequently criticized by economists as harming

2448-426: Is not causation... there is no reason for necessarily thinking that import protection was a good policy just because the economic outcome was good: the outcome could have been driven by factors completely unrelated to the tariff, or perhaps could have been even better in the absence of protection." Irwin furthermore writes that "few observers have argued outright that the high tariffs caused such growth." One study by

2584-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

2720-765: Is the exception and protectionism the rule". According to economic historians Douglas Irwin and Kevin O'Rourke, "shocks that emanate from brief financial crises tend to be transitory and have a little long-run effect on trade policy, whereas those that play out over longer periods (the early 1890s, early 1930s) may give rise to protectionism that is difficult to reverse. Regional wars also produce transitory shocks that have little impact on long-run trade policy, while global wars give rise to extensive government trade restrictions that can be difficult to reverse." One study shows that sudden shifts in comparative advantage for specific countries have led some countries to become protectionist: "The shift in comparative advantage associated with

2856-425: Is the most distorted exchange rate policy any great nation has ever followed”. He notes that an undervalued renminbi is tantamount to imposing high tariffs or providing export subsidies. A cheaper currency improves employment and competitiveness because it makes imports more expensive while making domestic products more attractive. He expects Chinese surpluses to destroy 1.4 million American jobs by 2011. There

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2992-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

3128-534: The American Revolution , which came about ostensibly due to British tariffs and taxes. According to a slogan of Frédéric Bastiat (1801–1850), "When goods cannot cross borders, armies will." On the other hand, archaeologist Lawrence H. Keeley argues in his book War Before Civilization that disputes between trading partners escalate to war more frequently than disputes between nations that don't trade much with each other. The Opium Wars were fought between

3264-678: The Doha Declaration , was issued in November 2001, which indicated that TRIPS should not prevent states from dealing with public health crises and allowed for compulsory licenses . After Doha, PhRMA , the United States and to a lesser extent other developed nations began working to minimize the effect of the declaration. In 2020, conflicts re-emerged over patents, copyrights and trade secrets related to COVID-19 vaccines , diagnostics and treatments. South Africa and India proposed that WTO grant

3400-809: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

3536-723: The European Parliament . In June 2022, after extensive involvement of the European Union , the WTO instead adopted a watered-down agreement that focuses only on vaccine patents, excludes high-income countries and China, and contains few provisions that are not covered by existing flexibilities. Proponents of protectionism argue that tariffs raise government revenue via customs . Developing countries , including least developed countries (LDCs), often do not collect income taxes because personal incomes are often too low to tax and they lack

3672-764: The Trump administration during the China–United States trade war led to a reduction in the United States trade deficit with China. Defunct Great Britain , and England in particular, became one of the most prosperous economic regions in the world between the late 1600s and early 1800s as a result of being the birthplace of the Industrial Revolution that began in the mid-eighteenth century. The government protected its merchants—and kept others out—by trade barriers, regulations, and subsidies to domestic industries in order to maximize exports from and minimize imports to

3808-511: The UK and China over the right of British merchants to engage in the free trade of opium . For many opium users, what started as recreation soon became a punishing addiction: many people who stopped ingesting opium suffered chills, nausea, and cramps, and sometimes died from withdrawal. Once addicted, people would often do almost anything to continue to get access to the drug. Barbara Tuchman says both European intellectuals and leaders overestimated

3944-532: The United Kingdom between 1815 and 1846, and enhanced the profits and political power associated with land ownership . The laws raised food prices and the costs of living for the British public, and hampered the growth of other British economic sectors, such as manufacturing, by reducing the disposable income of the British public. The Prime Minister, Sir Robert Peel , a Conservative , achieved repeal in 1846 with

4080-500: The WTO benefited US consumers, as the price of Chinese goods were substantially reduced. Harvard economist Dani Rodrik argues that while globalization and free trade does contribute to social problems, "a serious retreat into protectionism would hurt the many groups that benefit from trade and would result in the same kind of social conflicts that globalization itself generates. We have to recognize that erecting trade barriers will help in only

4216-547: The short run , cause significant economic dislocation of workers in import-competing sectors, free trade often lowers the costs of goods and services for both producers and consumers. A variety of policies have been used to achieve protectionist goals. These include: In the modern trade arena, many other initiatives besides tariffs have been called protectionist. For example, some commentators, such as Jagdish Bhagwati , see developed countries' efforts in imposing their own labor or environmental standards as protectionism. Also,

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4352-468: The "reciprocity period", the average tariff declined substantially until it leveled off at 5 percent. Economist Paul Bairoch documented that the United States imposed among the highest rates in the world from around the founding of the country until the World War II period, describing the United States as "the mother country and bastion of modern protectionism" since the end of the 18th century and until

4488-478: The 1846 Corn Laws debate, arguing that it destroyed what had been "some of the finest manufacturers of the world" in 1812. The countries of Western Europe began to steadily liberalize their economies after World War II and the protectionism of the interwar period, but John Tsang , then Hong Kong 's Secretary for Commerce, Industry and Technology and chair of the Sixth Ministerial Conference of

4624-543: The 18th century, Adam Smith famously warned against the "interested sophistry" of industry, seeking to gain an advantage at the cost of the consumers. Friedrich List saw Adam Smith's views on free trade as disingenuous, believing that Smith advocated for free trade so that British industry could lock out underdeveloped foreign competition. Some have argued that no major country has ever successfully industrialized without some form of economic protection. Economic historian Paul Bairoch wrote that "historically, free trade

4760-478: The 1950s, steel in the 1960s, automobiles in the 1970s, and electronics in the 1980s. In each case, the rapid expansion in Japan's exports created difficulties for its trading partners and the use of protectionism as a shock absorber." According to economic historian Douglas Irwin, a common myth about US trade policy is that low tariffs harmed American manufacturers in the early 19th century and then that high tariffs made

4896-650: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

5032-590: The 19th century, such as the Russian Empire and Austro-Hungarian Empire which remained highly protectionist. The Ottoman Empire also became increasingly protectionist. In the Ottoman Empire's case, however, it previously had liberal free trade policies during the 18th to early 19th centuries, which British prime minister Benjamin Disraeli cited as "an instance of the injury done by unrestrained competition" in

5168-519: The CFTC, the purchase raised the price of the commodity and earned the company $ 5.4 million. On June 30, 2016, Mondelez made a $ 23 billion offer to buy its smaller rival, Hershey . The half-cash, half-stock deal valued Hershey stock at $ 107 a share. Hershey's board, however, unanimously rejected the offer. In 2016, Terry's was one of a number of brands acquired by Eurazeo from Mondelēz, and it subsequently became part of Carambar & Co. In August 2017, it

5304-544: The Cobden Chevalier treaty and three decades after British Repeal, Germany "had virtually become a free trade country" (Bairoch, 41). Average duties on manufactured products had declined to 9–12% on the Continent, a far cry from the 50% British tariffs, and numerous prohibitions elsewhere, of the immediate post-Waterloo era (Bairoch, table 3, p. 6, and table 5, p. 42)." Some European powers did not liberalize during

5440-659: The Depression, Britain passed the Import Duties Act of 1932 , which imposed a general tariff of 10% on most imports and created the Import Duties Advisory Committee (IDAC), which could recommend even higher duties. Britain's protectionism in the early 1930s was shown by Lloyd and Solomou to have been productivity-enhancing. The possessions of the East India Company in India, known as British India ,

5576-546: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

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5712-501: The First World War on motorcars; clocks and watches; musical instruments; and cinematographic film were retained. Under commodities that were early to receive protection included matches, chemicals, scientific equipment, silk, rayon, embroidery, lace, cutlery, gloves, incandescent mantles, paper, pottery, enamelled holloware, and buttons. The duties on motorcars and rayon have been determined to have expanded output considerably. Amid

5848-557: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

5984-505: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

6120-635: The Netherlands, Denmark, Portugal and Switzerland, and arguably Sweden and Belgium, had fully moved towards free trade prior to 1860. Economic historians see the repeal of the Corn Laws in 1846 as the decisive shift toward free trade in Britain. A 1990 study by the Harvard economic historian Jeffrey Williamson showed that the Corn Laws (which imposed restrictions and tariffs on imported grain ) substantially increased

6256-802: The Nordic countries as well as from the football associations of Denmark, Norway and Sweden. Also, some Mondelez employees in Eastern Europe have protested. In May 2024, the European Commission imposed a fine on Mondelez of €337.5 million for anti-competitive practices and for abusing its dominant market position in breach of antitrust laws in the European Union (EU), including illegally blocking cross-border sales of chocolate, cookies, and coffee products between EU countries, thereby preventing retailers from sourcing products from EU countries where prices were lower. Multinational corporation Most of

6392-545: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

6528-458: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

6664-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

6800-565: The United Kingdom as "a decisive shift toward European free trade." This treaty was followed by numerous free trade agreements: "France and Belgium signed a treaty in 1861; a Franco-Prussian treaty was signed in 1862; Italy entered the "network of Cobden-Chevalier treaties" in 1863 (Bairoch 1989, 40); Switzerland in 1864; Sweden, Norway, Spain, the Netherlands, and the Hanseatic towns in 1865; and Austria in 1866. By 1877, less than two decades after

6936-492: The United Kingdom. Europe became increasingly protectionist during the eighteenth century. Economic historians Findlay and O'Rourke write that in "the immediate aftermath of the Napoleonic Wars, European trade policies were almost universally protectionist", with the exceptions being smaller countries such as the Netherlands and Denmark. Europe increasingly liberalized its trade during the 19th century. Countries such as

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7072-527: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

7208-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

7344-609: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

7480-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

7616-425: The United States into a great industrial power in the late 19th century. A review by The Economist of Irwin's 2017 book Clashing over Commerce: A History of US Trade Policy states: Political dynamics would lead people to see a link between tariffs and the economic cycle that was not there. A boom would generate enough revenue for tariffs to fall, and when the bust came pressure would build to raise them again. By

7752-481: The United States occurred under protectionist policies 1816–1848 and under moderate protectionism 1846–1861, and continued under strict protectionist policies 1861–1945. In the late 19th century, higher tariffs were introduced on the grounds that they were needed to protect American wages and to protect American farmers. Between 1824 and the 1940s, the U.S. imposed much higher average tariff rates on manufactured products than did Britain or any other European country, with

7888-562: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

8024-557: The United States. In 2010, Paul Krugman write that China pursues a mercantilist and predatory policy, i.e., it keeps its currency undervalued to accumulate trade surpluses by using capital flow controls. The Chinese government sells renminbi and buys foreign currency to keep the renminbi low, giving the Chinese manufacturing sector a cost advantage over its competitors. China's surpluses drain US demand and slow economic recovery in other countries with which China trades. Krugman writes: “This

8160-688: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

8296-498: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

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8432-533: The World Bank indicate that TRIPS has not led to a demonstrable acceleration of investment to low-income countries, though it may have done so for middle-income countries. Critics argue that TRIPS limits the ability of governments to introduce competition for generic producers. The TRIPS agreement allows the grant of compulsory licenses at a nation's discretion. TRIPS-plus conditions in the United States' FTAs with Australia, Jordan, Singapore and Vietnam have restricted

8568-541: The World Trade Organization , MC6, commented in 2005 that the EU spent around €70 billion per year on "trade-distorting support". Since 1971 Canada has protected producers of eggs, milk, cheese, chicken, and turkey with a system of supply management . Though prices for these foods in Canada exceed global prices, the farmers and processors have had the security of a stable market to finance their operations. Doubts about

8704-571: The achievement of their independence, most of the Latin American countries adopted protectionism. They both feared that any foreign competition would stomp out their newly created state and believed that lack of outside resources would drive domestic production. The protectionist behavior continued up until and during the World Wars. During World War 2, Latin America had, on average, the highest tariffs in

8840-472: The admittedly high tariffs of the time came with a cost, estimated at around 0.5% of GDP in the mid-1870s. In some industries, they might have sped up development by a few years. But American growth during its protectionist period was more to do with its abundant resources and openness to people and ideas. According to Irwin, tariffs have served three primary purposes in the United States: "to raise revenue for

8976-461: The application of compulsory licenses to emergency situations, antitrust remedies, and cases of public non-commercial use. One of the most visible conflicts over TRIPS has been AIDS drugs in Africa . Despite the role that patents have played in maintaining higher drug costs for public health programs across Africa, this controversy has not led to a revision of TRIPS. Instead, an interpretive statement,

9112-462: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

9248-464: The capability to collect such taxes from individuals. Tariffs were the greatest source of United States federal revenue (up to 95% at times) until the federal income tax began after 1913. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. At the end of the American Civil War in 1865 about 63% of Federal income was generated by

9384-786: The chocolate companies' laissez-faire approach to sourcing has driven extensive deforestation in Ghana as well. In Ivory Coast, deforestation has pushed chimpanzees into just a few small pockets, and reduced the country's elephant population from several hundred thousand to about 200–400. Mondelez claimed to have mapped almost all of its cocoa suppliers in Côte d'Ivoire, Ghana and Indonesia by 2018 in an effort to combat deforestation. In November 2018, an investigation by Greenpeace International found that 22 palm oil suppliers to Mondelez International cleared over 70,000 hectares (170,000 acres; 270 sq mi) of rainforest from 2015 to 2017. Mondelez received

9520-728: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

9656-650: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

9792-531: The company announced a merger of its coffee business with the Dutch firm Douwe Egberts . The name of the newly merged company would be Jacobs Douwe Egberts . The merger was confirmed on May 6, 2014, and completed on July 2, 2015. In April 2015, the U.S. Commodity Futures Trading Commission (CFTC) alleged that Mondelez International and its former subsidiary, Mondelez Global, bought $ 90 million (£61 million) of wheat futures with no intention of taking delivery. According to

9928-649: The company at £11.5 billion ($ 19.5 billion). Some funds for the takeover were provided by the Royal Bank of Scotland . Cadbury sales were flat after Kraft's acquisition. Despite the Cadbury takeover helping to boost overall sales by 30 percent, Kraft's net profit for the fourth quarter fell 24 percent (to $ 540 million) due to costs associated with integrating the UK business after the acquisition. Kraft spent $ 1.3 billion on integration to achieve an estimated $ 675 million in annual savings by

10064-589: The company changed its name to Kraft-Phenix Cheese Company. In 1930, National Dairy acquired Kraft Phenix. After the acquisition, the combined company retained the National Dairy name and management, though the Kraft Phenix side of the company continued to operate largely independently. On September 7, 2009, Kraft made a hostile £10.2 billion takeover bid for the British confectionery group Cadbury , makers of Dairy Milk and Bournville chocolate. On November 9,

10200-488: The company planned to have 100% coverage with Cocoa Life by 2025. An investigation in 2022 by Britain's Channel 4 Dispatches found children as young as 10 working on farms in Ghana supplying the Cadbury's brand of Mondelēz International. The investigation went to an address on Mondelēz's Cocoa Life website in 2022 and discovered child laborers harvesting cocoa without protective clothing. In November 2023, International Rights Advocates (on behalf of nine children) again filed

10336-401: The company's bid (then £9.8 billion) was rejected by Cadbury, which called it a "derisory" offer. Kraft upped its offer on December 4. It had significant political and public opposition in the United Kingdom and abroad, leading to a call for the government to implement economic protectionism in large-company takeovers. On January 19, 2010, Cadbury approved a revised offer from Kraft which valued

10472-613: The company's sales grew by 15% in North America, increasing its overall revenue by almost 3%. Mondelez International brands (formerly Kraft Foods Inc .) includes brand-name products that are developed, owned, licensed, or distributed by Mondelez International. The company's core businesses are snack foods and confectionery . In certain international territories, Kraft-branded products have been made by Mondelez under license from Kraft Heinz Company since 2012. In September 2017, an investigation conducted by NGO Mighty Earth found that

10608-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

10744-443: The cost of living for British workers, and hampered the British manufacturing sector by reducing the disposable incomes that British workers could have spent on manufactured goods. The shift towards liberalization in Britain occurred in part due to "the influence of economists like David Ricardo", but also due to "the growing power of urban interests". Findlay and O'Rourke characterize 1860 Cobden Chevalier treaty between France and

10880-430: The countries against which the protections are implemented. Protectionism has been advocated mainly by parties that hold economic nationalist positions, while economically liberal political parties generally support free trade . There is a consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers have

11016-606: The country. As of March 12, 2022, Mondelez International was listed in an online spreadsheet by Yale professor Jeffrey Sonnenfeld as being among a minority of companies continuing to do business in Russia, where it generates 3.5% of annual revenue (approximately $ 1 billion). On May 25, 2023, Ukraine's National Agency on Corruption Prevention (NACP) declared Mondelez International an international sponsor of war, noting that Mondelez's Russian branch increased its profit in 2022 by 303%. This has led to boycotts from consumers and companies in

11152-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

11288-476: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

11424-520: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Protectionism Protectionism , sometimes referred to as trade protectionism , is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas , and a variety of other government regulations. Proponents argue that protectionist policies shield

11560-486: The end of 2012. Kraft increased prices to offset rising commodity costs for corn, sugar, and cocoa in North America and Europe. According to Rosenfeld, "We expect it will remain weak for the foreseeable future." Taking into account integration costs, the acquisition reduced Kraft's earnings per share by about 33% immediately after the Cadbury purchase. In August 2011, Kraft Foods announced plans to split into two publicly traded companies, an international snack-food company and

11696-504: The entire Halls cough drop business. In June 2022, Mondelez announced that it would be acquiring Clif Bar for $ 2.9 billion. Through the acquisition, Mondelez will obtain Clif, Luna, and Clif Bar Kids as a part of its portfolio. On December 19, 2022, Mondelez announced that it was selling its gum business, including the Trident , Dentyne , Chiclets and Stride brands, to Perfetti Van Melle ,

11832-503: The exception for a period of time of Spain and Russia. Up until the end of World War II, the United States had the most protectionist economy on Earth. The Bush administration implemented tariffs on Chinese steel in 2002 ; according to a 2005 review of existing research on the tariff, all studies found that the tariffs caused more harm than gains to the US economy and employment. The Obama administration implemented tariffs on Chinese tires between 2009 and 2012 as an anti-dumping measure ;

11968-429: The excise taxes, which exceeded the 25.4% generated by tariffs. In 1915 during World War I tariffs generated only 30.1% of revenues. Since 1935 tariff income has continued to be a declining percentage of Federal tax income. A 2016 study found that "trade typically favors the poor", as they spend a greater share of their earnings on goods, as free trade reduces the costs of goods. Other research found that China's entry to

12104-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

12240-431: The fiscal year 2017, Mondelēz International reported earnings of US$ 2.922 billion, with an annual revenue of US$ 25.896 billion, a decline of 0.1% over the previous fiscal cycle. Mondelēz International's shares traded at over $ 42 per share, and its market capitalization was valued at over US$ 58.8 billion in October 2018. In the first quarter of 2020, due to COVID-19 lockdowns and people stocking up with sweets,

12376-486: The government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers." From 1790 to 1860, average tariffs increased from 20 percent to 60 percent before declining again to 20 percent. From 1861 to 1933, which Irwin characterizes as the "restriction period", the average tariffs increased to 50 percent and remained at that level for several decades. From 1934 onwards, which Irwin characterizes as

12512-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

12648-465: The imposition of restrictive certification procedures on imports is seen in this light. Further, others point out that free trade agreements often have protectionist provisions such as intellectual property, copyright , and patent restrictions that benefit large corporations. These provisions restrict trade in music, movies, pharmaceuticals, software, and other manufactured items to high-cost producers with quotas from low-cost producers set to zero. In

12784-516: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

12920-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

13056-544: The largest United States corporations by total revenue. The company has its origins as Kraft Foods Inc. , which was founded in Chicago in 1923. The present enterprise was established in 2012 when Kraft Foods was renamed Mondelez and retained its snack food business, while its North American grocery business was spun off to a new company called Kraft Foods Group . The name is derived from the Latin word mundus ("world") and delez ,

13192-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

13328-521: The late 1940s, it stifled agricultural production, exports and business sentiment, in general. Despite these shortcomings, protectionism and government credits did allow an exponential growth of the internal market: radio sales increased 600% and fridge sales grew 218%, among others. During this period Argentina's economy continued to grow, on average, but more slowly than the world as a whole or than its neighbors, Brazil and Chile. By 1950, Argentina's GDP per capita accounted fell to less than half of that of

13464-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

13600-403: The liberal era of low tariffs and free trade. One study found that tariffs imposed on manufactured goods increase economic growth in developing countries, and this growth impact remains even after the tariffs are repealed. According to Dartmouth economist Douglas Irwin , "that there is a correlation between high tariffs and growth in the late nineteenth century cannot be denied. But correlation

13736-622: The makers of Mentos . The deal closed on October 2, 2023. The headquarters is located in Fulton Market , in Chicago, Illinois. In 2020, the company announced that the headquarters was moving from suburban Deerfield, Illinois to Chicago. Mondelez' North American headquarters was then established in East Hanover , New Jersey , U.S., and a global innovation center was opened in 2023 in nearby Whippany , also in Morris County, New Jersey . For

13872-488: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

14008-531: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

14144-600: The member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations. TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) between 1989 and 1990 and is administered by the WTO. Statements by

14280-478: The opening up of New World frontiers, and the subsequent "grain invasion" of Europe, led to higher agricultural tariffs from the late 1870s onwards, which as we have seen reversed the move toward freer trade that had characterized mid-nineteenth-century Europe. In the decades after World War II, Japan's rapid rise led to trade friction with other countries. Japan's recovery was accompanied by a sharp increase in its exports of certain product categories: cotton textiles in

14416-471: The people it is intended to help. Mainstream economists instead support free trade. The principle of comparative advantage shows that the gains from free trade outweigh any losses as free trade creates more jobs than it destroys because it allows countries to specialize in the production of goods and services in which they have a comparative advantage. Protectionism results in deadweight loss ; this loss to overall welfare gives no-one any benefit, unlike in

14552-534: The plaintiffs sought damages for unjust enrichment, negligent supervision, and intentional infliction of emotional distress. As with deforestation, Mondelez is 'starting to implement good policies' according to the 2022 Chocolate Scorecard. Its Cocoa Life programme for sustainable cocoa aims to address the root causes of child labour with a holistic approach, collaborating with families, encouraging school attendance and monitoring child labour on farms. Cocoa Life farms accounted for 43% of Mondelez' cocoa needs by 2018 and

14688-470: The post-World War II period. Alexander Hamilton , the first United States Secretary of the Treasury , was of the view, as articulated most famously in his " Report on Manufactures ", that developing an industrialized economy was impossible without protectionism because import duties are necessary to shelter domestic " infant industries " until they could achieve economies of scale . The industrial takeoff of

14824-477: The power of free trade on the eve of World War I . They believed that the interconnectedness of European nations through trade would stop a continent-wide war from breaking out, as the economic consequences would be too great. However, the assumption proved incorrect. For example, Tuchman noted that Helmuth von Moltke the Younger , when warned of such consequences, refused to even consider them in his plans, arguing he

14960-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

15096-404: The producers, businesses, and workers of the import-competing sector in the country from foreign competitors and raise government revenue . Opponents argue that protectionist policies reduce trade , and adversely affect consumers in general (by raising the cost of imported goods) as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in

15232-517: The public by falsely claiming their "rehabilitation" programs offer meaningful assistance to children found working on their plantations. After the Russian invasion of Ukraine on February 24, 2022, many international companies felt compelled to reduce or end business in the Russian Federation. Mondelez made public statements that it had "reduced all non-core activities" and stopped new investments in

15368-535: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

15504-591: The realm. The Navigation Acts of the late 17th century required all trade to be carried in English ships, manned by English crews (this later encompassed all Britons after the Acts of Union 1707 united Scotland with England). Colonists were required to send their produce and raw materials first of all to Britain, where the surplus was then sold-on by British merchants to other colonies in the British empire or bullion-earning external markets. The colonies were forbidden to trade directly with other nations or rival empires. The goal

15640-611: The rights to Christie Brown and Company, which consists of brands such as Mr. Christie , Triscuits , and Dad's Cookies. Its head office is in Toronto , Ontario , with operations in Brampton , Hamilton , Ontario and Montreal , Quebec . Mondelez International is rooted in the National Dairy Products Corporation (National Dairy), which was founded on December 10, 1923, by Thomas H. McInnerney and Edward E. Rieck. The firm

15776-504: The safety of bovine growth hormone , sometimes used to boost dairy production, led to hearings before the Senate of Canada , resulting in a ban in Canada. Thus, supply management of milk products is consumer protection of Canadians. Most Latin American countries gained independence in the early 19th century, with notable exceptions including Spanish Cuba and Spanish Puerto Rico . Following

15912-554: The so-called late-Victorian climacteric in the British economy: a decline in the growth rate, i.e. a deceleration. During the interwar era, Britain abandoned free trade. There was a limited erosion of free trade during the 1920s under a patchwork of legislation including the Safeguarding of Industries Act of 1921 , the Safeguarding of Industries Act of 1925 , and the Finance Act of 1925 . The McKenna Duties , which were imposed during

16048-495: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

16184-689: The support of the Whigs in Parliament, overcoming the opposition of most of his own party. While the United Kingdom espoused a policy of free trade in the late nineteenth century, it was hardly the case that Britain was unaffected by the tariffs imposed by its trade partners—tariffs that generally increased during the late nineteenth century. According to one study, Britain's exports in 1902 would have been 57% higher, if all of Britain's trade partners also embraced free trade. The decline in overseas demand for British exports, resulting from foreign tariffs, contributed to

16320-408: The time that happened, the economy would be recovering, giving the impression that tariff cuts caused the crash and the reverse generated the recovery. 'Mr. Irwin' also attempts to debunk the idea that protectionism made America a great industrial power, a notion believed by some to offer lessons for developing countries today. As its share of global manufacturing powered from 23% in 1870 to 36% in 1913,

16456-484: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

16592-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

16728-414: The world", meaning that its finished goods were produced so efficiently and cheaply that they could often undersell comparable, locally manufactured goods in almost any other market. By the 1840s, the United Kingdom had adopted a free-trade policy, meaning open markets and no tariffs throughout the empire. The Corn Laws were tariffs and other trade restrictions on imported food and corn enforced in

16864-466: The world. Juan Perón erected a system of almost complete protectionism against imports, largely cutting off Argentina from the international market in the 1940s. Protectionism created a domestically oriented industry with high production costs, incapable of competing in international markets. At the same time, output of beef and grain, the country's main export goods, stagnated. The IAPI began shortchanging growers and, when world grain prices dropped in

17000-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

17136-630: Was a "soldier," not an "economist." The ongoing Russo-Ukraine War began in the aftermath of the Revolution of Dignity and the signing of the European Union–Ukraine Association Agreement in 2014, which included a Deep and Comprehensive Free Trade Area for Ukraine and the European Union (EU). The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all

17272-531: Was announced that Dirk Van de Put , Belgian CEO of McCain Foods , would succeed Irene Rosenfeld as CEO in November 2017. On May 6, 2018, Mondelez agreed to buy cookie maker Tate's Bake Shop for approximately $ 500 million. The acquisition was completed on June 7, 2018. On June 19, 2019, Mondelez agreed to acquire a majority interest in Perfect Snacks, owner of refrigerated protein bar Perfect Bar. The acquisition

17408-480: Was completed on July 16. On February 25, 2020, Mondelez announced that it was acquiring a majority stake in Toronto-based Give & Go, a maker of two-bite brownies. The acquisition was completed on April 3, 2020. In January 2021, Mondelez announced that it had bought Hu Master Holdings for more than $ 250 million. On May 26, 2021, Mondelez announced an agreement to acquire Greek snack company Chipita S.A. ,

17544-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

17680-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

17816-544: Was initially set up to execute on a rollup strategy in the fragmented United States ice cream industry. In 1924, Kraft Cheese Company was founded and was listed on the Chicago Stock Exchange . Two years later, it was listed on the New York Stock Exchange . In 1928, it acquired Phenix Cheese Company, the maker of a cream cheese branded as Philadelphia Cream Cheese , founded by Jason F. Whitney Sr. and

17952-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

18088-467: Was positively correlated with economic and industrial growth during the 19th century. For example, GNP growth during Europe's "liberal period" in the middle of the century (where tariffs were at their lowest), averaged 1.7% per year, while industrial growth averaged 1.8% per year. However, during the protectionist era of the 1870s and 1890s, GNP growth averaged 2.6% per year, while industrial output grew at 3.8% per year, roughly twice as fast as it had during

18224-517: Was the centrepiece of the British Empire, and because of an efficient taxation system it paid its own administrative expenses as well as the cost of the large British Indian Army . In terms of trade, India turned only a small profit for British business. However, transfers to the British government was massive: in 1801 unrequited (unpaid, or paid from Indian-collected revenue) was about 30% of British domestic savings available for capital formation in

18360-503: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

18496-505: Was to maintain the North American and Caribbean colonies as dependent agricultural economies geared towards producing raw materials for export to Britain. The growth of native industry was discouraged, in order to keep the colonies dependent on the United Kingdom for their finished goods. From 1815 to 1870, the United Kingdom reaped the benefits of being the world's first modern, industrialised nation. It described itself as "the workshop of

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