Economic globalization

1>  Summarize in your own words of materials you read.

When we discuss Economic globalization at the aspect of the corporation, TNC -which means Transnational Corporation-, is the important factor. TNC has a power that affects the whole world and it emasculates the national boundaries. Many companies or corporations turn to transnationalism and there are two categories.  First one is the ‘market-oriented investment’. A firm has reached fully point in domestic market. In order to increase profitability and efficiency, firms expand their market beyond its local territory. However, sometimes it is restricted to access the foreign market because of political or cultural regulatory structure. Second category is the ‘asset-oriented investment’. Similar to the market-oriented investment, assets are also geographically very unevenly distributed. Early TNCs depend on natural resource sectors such as energy, industrial resources and agricultural products. It has a very long history but flow is changed in the past 50 years. Transportation and communication technologies are developed as well as in production process technologies. Skills and knowledge became important, especially, human resource. Cheap labor is important, but increasing the demand of valuable human capital, well-educated and highly skilled workers influence on TNCs. Perhaps, TNCs seem to possess absolute power, but it doesn’t. TNCs have a possibility to constrain freedom.

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

I think TNCs look like cameleon. They make integration beyond geographical boundaries and they adopt properly in each countries. I learned differences between multinational corporations and TNCs. Multinational corporation has a one-way standard and apply in each country, but TNCs has many standards when they cross the border. For examples, McDonald, invents mutton burgers in India and invents Bulgogi burgers in South Korea. Also, TNCs are closely related to local governments. To enter the countries, TNCs are needed reduced government regulations and low taxes. In addition, there is a possibility to distribute the power with unbalanced between nations even though transnational corporation.

3>  Identify at least one question, concern, or discussion angle that is either problematic in some respect or could have been elaborated more.

Nikkei business, weekly business magazine in Japan, said that Power of growth which changes the world is not nations, but it is corporation. In Thailand, corporation Honda issue driver licenses standing in for Thailand government. As followed example, firms or corporations replace roles of government. How do you think about it? And how do you think about government regulation? Which  level is appropriate? Is it okay to open or close everything?