The world's 500 largest firms derive most of their revenue from their home-region markets. For instance, most European firms derive over 50% of their revenues from their marketing operations in European countries. The same can be said for companies in the North American and Asia-Pacific regions. Indeed, in 2001, the average intra-regional revenue for the 380 firms for which data was available was 71.9%. These 380 companies account for 76% of the world's 500 largest firms and 79.2% of their revenues. The following methodology describes how the data were gathered and categorized.

METHODOLOGY

Data on the “Regional Nature of Global Multinational Activity” (the RNGMA database) used in this book were collected from official documents of the world's 500 largest companies according to Fortune, “The Fortune Global 500” (2002). Wherever possible the annual report and, in the case of United States companies and those with large operations in the United States, SEC filings were used to obtain data on regional sales. Companies failing to publish this information were contacted directly. For companies that did not disclose the information, relevant information (number of stores, net income, etc.) was used to estimate regional revenue. Of the largest 500 firms, intra-regional sales data were obtained for 380 companies.

Throughout this chapter, companies are classified as home-region oriented; bi-regional; host-region oriented; or global. Home-region oriented companies derive at least 50% of their revenues from their home region.