Economic Globalization

1. Summarize

 There are many opinions about economic globalization, those don't narrow differences down. But, economic globalization has a clear agreement, that is a business corporation. Clearly, that acknowledge an importance of the transnational corporation(TNC). TNC is an important part of global enconomy.

 Colonial rulers and Merchant capitalists create a huge business empire. This empire create significant value through trade and exchange. And today, world trade and service company has been made from that trading company. In 15th century, in Europe, let's use the East India Company and the Hudson's Bay Company as an example.

 In 1914, many companies in USA and Europe had been a transnational business. Especially, for the last 50 years, TNCs has been increased rapidly, give an effect to global economy. Now, TNC cooperate and operate in many nation, they also has an control something that they didn't own. That is a reason why we call TNC as global business. TNCs have not obeyed a certain nation or community, They exist all over the world.

 Traditionally, TNC's working is measured for Foreign Direct Investment(FDI). FDI is not simply using asset in domestic market, but an investing to found a continuous economic relation with domestic business, like participation in management and technical cooperation. FDI has grown acceleratively during the last 20 years. Continuously, The growth of FDI has overtaken a development of world trade. A variation of TNCs has been increased in global economy.

 A method and expansion of business company's range is differed by complicated and partial situation. Recently, Market-Oriented Investment take a most part of total investment. Domestic market is already saturation, so there is not competition. Thus, we expand extra-home territory market.

 Also, an unbalance of geographical market is main reason of the occurrence of TNC. Establishment or merger with other company, and other expansion methods are Asset-Oriented Investment. Recently, the most growth of world FDI is occurred by merger and acquisition. The expansion of TNC is arisen from technical collaboration with one or more companies. These expansion is a core multinational tatic to many companies.

 Every business firm is composed of complexity, dynamic producing network, consume and distribution. TNC can take an effect to other political, cultural, social environment naturally because general TNCs are located as geographical diffusion. TNCs has a feature that head office is located in home country. But some functions of head office are diffused to other place in a company's transnational network.

 In economic globalization, TNC has a great effect and they can be steadily concerned with other nations or culture. The importance of TNC is being magnified consistently.
 

2. Mention of any new, interesting, or unusual items learned

 I know that TNC's influence is so massive to global economy through this script. Also I learn a concept and meaning about Foreign Direct Investment(FDI). In fact, I think that import, export and FTA(Free Trade Agreement) between multi-nations has taken an important part of global economy. I has overlooked the fact that politics, economy and society are closely connected.

 In Korea, many conglomerates leads domestic economy in 1970s, I think that global economy is also developed mainly with company. I'm afraid to this point. Interestingly, a transnational firms didn't estrange 'home country'. Because they think that they can take a profit to populous and less-developed country. This script narrate the importance of TNC, it is so impertinent. I wish it has to describe about problems about global economy occurred by TNC.
 

3. Discussion

 I think that each country has their own culture and historical background, but transnational companies ignore and unify them. I doubt that they'd rather made a transnational company for many countries. There is no limit to people's greed. For example, in Africa, mothers are considered normal to breastfeed their babies. However, 'Nestle', huge transnational firm, promote that mother who feed a dry milk is a modern mother, so many mother in Africa feed their babies to dry milk. Tragically, after feeding dry milk, an infant mortality is increased in Africa. This is an abnormal marketing strategy for a profit which ignore an expectable result.

 Anyway, TNC give a positive influence to economic globalization. But I'd like to discuss the necessity of TNC whether the positive effects can offset the negative things in globalization.