Economic globalization

Economic Globalization: Corporations

Peter Dicken

 

 

Summarize in your words of materials you read   

  The transnational corporation(TNC) is the key that solves cacophony of opinions on economic globalization. Recently, we live in a world of global corporations. We knows provide a more nuanced depiction and explanation of the nature and significance of TNCs in the processes of economic globalization because TNCs are an approach that is grounded in the empirical reality of a differentiated geography.

This chapter focused of five related issues.

(1) the scaleand geographical distribution of TNCs in the global economy

(2) why and how corporations engage in transnational activities

(3) the geographical embeddedness of transnational corporations

(4) the ‘webs of enterprise’ manifested in transnational production networks

(5) the power relationships between TNCs and other actors in the global economy.

 

   The development of companies with interests and activities located outside their home country was part and parcel of the early development of an international economy. A lot of companies that trade played important roles to increasingly interconnected political economy.

TNC activity is measured using statistics on foreign direct investment. The vast majority of FDI consists of cross investment between developed countries. TNCs contribute the undoubtedly growing in the world. The diversity TNCs is increasing in the global economy.

   Place and geography still matter in the ways which firms are preduced and in how they behave. All TNCs are produced through an complex process of embedding in which the cognitive, cultural, social, political, and economic characteristics of the national home base play a dominant part.

All business firms are highly complex and dynamic networks of production, distribution and consumption. This networks have become extensive geographically and controlled primarily by transnational corporations.

   TNCs’ power is that their potential ability to take advantage of geographical differences in the availability and cost of resources. While recognizing the undoubted power and influence of TNCs in the global economy, we have to avoid the simplistic view that TNCs always prevail. TNCs may be powerful but they do not possess absolute power.

 

 

Mention of any new, interesting, or unusual items learned

  I learned TNCs in this chapter. I think the development of TNCs means that advanced countries such as USA, Japan and EU have supremacy of state to other countries. I think this matter is very important. The increase of oversea investment may reduces native job. Thus, unemployment matter may be serious in the developing country.

 

 

Identify at least one question, concern, or discussion angle

   I concern about the negative influence that TNCs have an effect on the international politics. For example, there is one TNC that has international market power in agricultural production. This corporation may monopolize a patent about plant breeding. Thus, international farmers have to pay guarantee to that corporation. If many farmers cultivate other plant because of a expensive guarantee, they can’t use relatively inexpensive agricultural pesticides that are sold by TNC, and finally, they failed.

   Eventually, it is real that TNCs contribute the increase of international economy. But a lot of negative influences of TNCs’ abuse of market power are the problem. TNCs influence on the political part. Thus, we have to concern about TNCs’ abuse of power.