Economic Globalization ; Corporations (Peter Dicken)

Paper summary.

Paper is premised on that TNC is spreading out all over the world and having strong impact on global society. So the purpose of this pater is to provide a more nuanced depiction and explanation of the nature and significance of TNCs in the processes of economic globalization.

And paper includes 5 related issues to explain this phenomenon.

In period of the global economic development, specially in first, there were East India Company and the Hudson's bay Company placed. They were clearly?(I personally think that this thinking stem from modernization which ignore the many sacrifices in modernization) the ancestors of today's global trading and service copanies.

After World war 1, a number of US, UK companies were transnationalized.

The vast majority of the world’s leading 100 TNCs still retain more than half of their activities in their home country. TNCs is operating in only 1 or 2 countries outside their home base. At the same time they operate in different political, social and cultural environments.

FDI(foreign direct investments)has grown at an accelerating pace during the past two decades. Indeed, the vast majority of FDI consists of crossinvestment between developed countries. Of course, there is significant – and growing – FDI in developing countries. But this is far less than popular opinion suggests. 

FDI vs TNC

Increasing diversity of TNC reject to lead the developing countries's development. 

Two broad category of motivations.

market-oriented investment-Increasing profitability may well depend, therefore, on being able to expand its market beyond its home territory. It may have identified new markets that require a direct presence in order to serve them efficiently. 

asset-oriented investment-geographical unevenness of market,  unevenness of assets need to process of product can be motivation of why firms trasnationalized.

Two ways of developing TNC activity.

greenfield investment-simply the building of totally new facilities

engagement with other firms- they are acting for each other and merger (strategic collaboration)

Transnational corporations have a character about embeddedness similar to chaining process for example, Star Bucks , Angel In Us.. this connection cause to imbalance compared other minor corporations.  it would be extremely surprising if the distinctive nature of nationally based TNCs were to be replaced by a standardized, homogeneous form.

Enterprise means chaining process. This enterprise enforced to connection and growth 

of transnational production network as well. Corporations are getting bigger because of 

this system.

Mention of any new, interesting, or unusual items learned. And my opinion about TNC

TNC; I have wondered that why nation or government lose the power and can not protect their people from risk such as poor, taking job, health. Because, Corporations specially big TNC act in capitalism logic, and even nations or government can control them. So I just recognized after reading this paper that TNC got many reason for naturally getting bigger as global phenomenom. 

And also, in other view, TNC can solve the world poor problem. But in my opinion, they can not do that and even they already knew they do not have to do that. Even they will use the 'world poor' as their profit in global market. By using the poor in the 3 world nations, TNC and nations which got TNC is more getting bigger. The poor has to get poorer. In this situation, polarization will be serious global issue. 

In global capitalism, boundary or economic shelters can not be operated. I got shame for this kind of neo-colonialism. 

Polarization make the third world poorer. It can be our, Korean problem too.