Posts Tagged ‘world economies’

The Kassandra Project


In “Killer Corporations: grow rate from 2005 to 2007” we wrote about the trends of the number of corporations in the world top economies. We saw something strange. So we wanted to analyze more deeply: we wrote the Kassandra Report – Dec2007, whose we past the most important words.


Kassandra Report – Dec.2007

Status of this report

With this report we want to analyze the relationship among the world economies and corporations. In particular we want to put in evidence four zones of interest:
1. Area of powerful countries A1;
2. Hybrid Area of countries and powerful corporations A2;
3. Area of corporations A3;
4. Area of rest of the world A4.

By studying economic data on Gross Domestic Product (GDP) reported by International Monetary Fund in the years from 2000 to 2007, and those reported by Fortune Global 500 in the years 2005-2007 and by Forbes in the years 2000-2004 about revenues, we made a list of top 100 economies and some statistics.
In 1996 Steve Gorelick made a similar list by using GNP instead of GDP, and profits. But we’re analyzing economy: we want to consider revenues and GDP.
In “Of the world’s 100 largest economic entities, 51 are now corporations and 49 are countries” compiled by Sarah Anderson and John Cavanagh of the of the Institute for Policy Studies in their Report on the Top 200 corporations released in December 2000, they considered GDP and sales.
From Wikipedi, Sales are the activities involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.
The “deal is closed”, means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller.
Academically, selling is thought of as a part of marketing, however, the two disciplines are completely different. Sales often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salespersons (singular: salesperson). Sales is considered by many to be a sort of persuading “art”. Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesperson relates his offering of a product or service in return enabling the buyer to achieve his goal in an economic way.

What is the difference between revenue, income, and gain?

You can read here that Revenue is the amount earned from a company’s main activities such as selling merchandise or providing services.
A gain results from a peripheral activity, such as selling the old delivery truck. A gain is the amount received that is in excess of the asset’s carrying amount (book value). For example, if the company receives $3,000 for the truck, and its carry amount was $600, the company will report a gain of $2,400.

Income is sometimes used instead of the word revenue: some people refer to the rent they receive as rent income. Generally, accountants use the word income to mean “net of revenues and expenses.” For example, a retailer’s income from operations is sales minus the cost of goods sold minus operating expenses.

The terms Revenue and Income are often used in reporting earnings. What is the difference?

Audrey W. answered that Revenue (sometimes called sales) refers to all the money a company takes in from doing what it does — whether making goods or providing services. Other sources of funds — including investment gains — are usually labeled as such but also included as revenue. (Occasionally, you’ll see this number referred to as “gross income.”)
For these reasons we can make the same statistics made by Sarah Anderson and John Cavanagh in 2000 about the top economies entities in the world.
If you don’t want to read all these lists, we suggest you to go to the end of this article, where there are interesting results on strange behavior of world economies which sound like conspiracy and manipulation.

Then we reported the tables with the top 280 world economies in the years from 2000 to 2007.

Number of Corporations vs First World Top Economies

number of corporations in the world top economies

We can see almost the same behavior for seven graphs, in an years range where a lot of corporations became other corporations, changed names, failed, and so on.
Statistical oscillations come from 0% to 2.5% point to point, for an average mean oscillation of 0.0089 %.
We want to analyze the relationship among the number of corporations and the first economic entities in the world in the range 70-160 economies. We found an incredible result:

kassandra report about corporations and world top economies


There is a linear correlation among these numbers with a correlation factor greater than 0.996 for each distribution over seven years. It means that we can describe this area with a linear model.

Four zones

We said that we can build four zones in order to describe the relationship between the corporations number and the world economies:

1. Area of powerful countries A1;
2. Hybrid Area of countries and powerful corporations A2;
3. Area of corporations A3;
4. Area of rest of the world A4.



We have only countries in this area. As you can see from the previous tables, these countries are always the same.


In this area we can see almost the same number of countries and corporations. If we consider only the first 100 economies, we can see an average of corporations of about 45%.


In this area we see a lot of corporations. We must consider the percentages:
• 0% in the top 20;
• 45% in the top 100;
• 62% in the top 160;
• 36% in the top 280.


In this area we see only countries: there are no corporations.


We have no corporations in the top 20, but we have always the same countries with little oscillations.

Then we see some corporations, for a worrying percentage of 45% in the top 100. There is an incredible linear behavior between top 70 and top 160; at the same time we see that 62% of top 160 economic entities are corporations.

We don’t see corporations between top 161 and top 280, but we see always the same countries, with some oscillations.

There are 280 entities, which are in any way dependent each other. These dependences could create oscillations, more or less visible, but it is quite difficult to have the same behavior for seven years.

What if this trend is not random?

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