Economic Globalization: Corporation

1.Summary

This article is to provide an explanation of the nature and significance of transnational corporation(TNC) in the process of economic globalization.Lots of manufacturing companies in UK, US and some continental European were increasingly transnationalized in 1914.Since then, the number of TNC's in the world economy has grown exponentially. It is hard to definite TNC because it linked a number of attributes with the complex relationships between firms operating across national boundaries. TNC sometimes seems placeless. The reasons why firms transnationalize are complex. We can categorize like this: market-oriented investment and asset-oriented investment. There are two ways that firmas develop transnational activities: greenfield investment and engagement(the kind of merger). After mention about a sequence of TNC development, it said firms are not neccesaarily large before embarking abroad business.Of course organizing networks is different according to home characteristics. Firms are linked with complex networks of production, distribution and consumption across borders. So it can not be independent organization and free from nation. Besides, regulatory institutions established standards and it has played a significant role between firms and nation in the world.


2. What was interesting?

Part of cheap labour was interesting. Labour seems like an asset. We are living under capitalism, we can not deny substitution that changes from human labour to just a asset. Firms have a nature thinking worker as an efficiency, not people. When I saw people working for garments, textiles even foods under TNC from developing countries, they were working like a slave. They can not even rest, receive a reasonable payment under harsh working surrounds. I think we can blame this problem on their countries even TNC who cares only contracts and productions!

3. Discussion point

When I knew about those people, I stopped buying products made by firms that operating with this issues. Is there other way to present dissatisfaction or to make firms change?