This is a paper about 2 North Texas companies that operate globally

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The story of ExxonMobil
ExxonMobil was formed as a result of a merger between Exxon and Mobil in 1999. The two companies descended from John D. Rockefeller’s Standard Oil Company, being two of several other descendants. The merger of the two companies created the single largest descendant of Standard Oil Company. The company is mainly focused on energy especially oil and gas. It is headquartered in Irving, Texas. The company trades as three brands namely Exxon, Esso and Mobil. ExxonMobil is ranked consistently as among the top ten largest companies globally. It is the largest oil company in the world; largest oil refinery; top ten largest in terms of revenue one of the top ten largest companies in the world. ExxonMobil produces about 3% of oil in the world and 2% in overall energy production. The company has three main operations on the world energy market. These are referenced as upstream, downstream and chemical divisions. Upstream division mainly concerns with the company’s oil exploration, extraction, wholesale operations and shipping while downstream involves marketing, retail and refining operations.
The formation of ExxonMobil through the merger of Exxon and Mobil was dogged by a number of challenges. Exxon was the largest oil company and Mobil was the second. Exxon was based in New Jersey while Mobil was based in Virginia. The oil industry was having a tough time because of low prices and increased competition. The deal was reviewed by the Federal Trade Commission for 11 months; making it the longest time the commission had ever taken in reviewing a deal then. To make the merger possible, the Federal Trade Commission had a number of requirements for both companies to fulfill in restructuring their operations. This was in order to protect consumers from potential monopolistic behaviors by the incoming mammoth company. Some of these were the companies to divest from specific regions where they operate. The companies were to sell 2,431 gas stations in the northeastern United States: the divestiture was the largest in the commission’s history (Federal Trace Commission). Officially, Exxon was buying Mobil at a deal that was the largest in history then. The newly formed company became the largest company in the world with a valuation in excess of $250 billion (Harrison).
Both companies being in the oil industry get to enjoy economies of scale in their operations. Their size made them able commit huge resources in exploration in far flung areas like the North Sea and Africa. At the time of the merger, Exxon was the largest oil and gas company in the world. As such, when it merged with Mobil to form ExxonMobil, it had already established successful operations overseas. Their expertise being in exploration, the combined company was able to establish exploration ventures in virtually every corner of the globe. The company holds land for exploration in millions of acres in many countries worldwide. All these activities are done by the upstream division of the company which accounts for roughly 70% of the company’s revenue. In the combined company, the factor of production that went global first was capital. This is because having already established exploration ventures available worldwide courtesy of Exxon, ExxonMobil needed massive capital to continue with these ventures. Exploration is a normally capital-intensive undertaking of any company. The size of the new merged company meant that the capital they needed to continue operations abroad would be massive. The locations where this capital was directed was in all the continents of the globe. This is because Exxon had established its exploration activities in all the continents. They were present in Europe through North Sea, Germany, United Kingdom, Denmark among others. In Africa, they had interests in Angola, Madagascar, Chad and Equatorial Guinea. In Asia, ExxonMobil had presence in Russia, Qatar, Iraq, Thailand, Abu Dhabi among other nations. This is not forgetting the Americas; both North and South. ExxonMobil exploration activities could be found in Mexico, Argentina, Canada and the United States. These exploration activities and the capital needed was a continuous act of the company following on Exxon’s investments.
ExxonMobil, as an American North Texas-headquartered conglomerate with global operations, has benefited greatly from globalization. These benefits have managed to make the company maintain its position as one of the largest companies in the world through consistent growth. With most of its focus outside the United States, the company derives a significant portion of its income outside the United States. Globalization has helped ExxonMobil in maintaining its position as the largest oil and gas company in the world. It gives ExxonMobil a global market for its products and a global location to source for more of oil and gas. The size of the company also makes them benefit from preferential trade terms because of the potential benefits an investment from them in ex...