Reading 4 : Economic Globalization ( Yasmine Harfouche)

  

1 - SUMMARY 

 The article ; " Economic globalization : corporations" from Dicken show the relation between corporation and globalization. Peter Dicken's article is based on five issues: (1) the scale and 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.


(1)  the scale and geographical distribution of TNCs in the global economy

Delocalisation of firms in other country is on of the aspect of economic globalisation. Firms from industrialized country move their factories to third world countries.We call these firms , global corporations or transnational corporations. 

(2) why and how corporations engage in transnational activities;

There's multiple reason why corporation delocalize their factories. Their motivation is based on market oriented investment and asset orientend investment. 

Market oriented Investment : 

This reason might be related to native market from a company, when they want to reach overseas market, companies can exist in other countries and reach new consummers.

Asset oriented Investment: 

Sometimes there's not enough natural ressources in the native country to continue the activities. Labour is also more cheap in third world countries.

(3) the geographical embeddedness of transnational corporations;

This issue shows that transnational corporations make geographical transformations inevitably wherever they are in the globle.

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

The recent existence of the Web allowed TNC to step further into the networks of production, distrubution and consumptions. 


2- DISCUSSION POINT 

it is interesting to see how the relocation of companies does not allow the poorest countries to evolve as much as the countries with  less hand working jobs since they transfered all the hand working jobs to third world countries for their low cost.


4- QUESTION

What if there is no globalization in the economic world ? 

Comments

Post a Comment

Popular posts from this blog

[Hofstede's dimensions] Comparing South Korea, China & Japan

Image
   I compared Korea, China, and Japan using Hofstede's dimension. What are the cultural measures of neighboring countries with similar cultures? [Masculinity]  Japan's index was the highest with 95 points. I think this is related to the indicator of individualism. In the case of individual-centered Japan, not group-centered, it focuses on individual performance and shows a strong preference for achievement or success. Therefore, I think a high number came out of Masculinity. On the other hand, in Korea, efforts are made to reduce unnecessary conflicts and maintaining relationships is important. Therefore, I think it shows a relatively low score in Masculinity. [Long Term Orientation]   The reason why Korea scored 100 points in terms of long-term orientation is that Korea is such a practical and long-term-oriented society. The Hofstede Insight website says Korea encourages saving and effort in modern education as a way to prepare for the future. However, both cou...
Read more

Hofstede's dimensions_ Comparing South Korea, China, Japan (MINJI JEONG)

Image
       Korea, China, and Japan are three neighboring countries in Central Asia and have many cultural connections. Therefore, the three countries were compared through the Hofstede's index. First, it is Power Distanced. This is an indicator of the hierarchical degree of each country. The hierarchies of the three countries are in the order of China, Korea, and Japan.      In terms of individualism , Japan has the highest score of 46. It can be interpreted that this item means the degree of personalization of the country. In comparison, China and Korea recorded around 20 points. This is presumed to be largely influenced by 'collectiveism', a virtue of society that has been emphasized since ancient times.   This can also be found to be related to the number of masculinity . Japan also has the highest score of 95. China followed with 66 points and South Korea with 39 points. I think it reflects Japan's strong individualism and meritocracy.   The...
Read more

Reading Assignment 4: Economic and Globalization -CAI YAYU

  A ）  Summary The term "economic globalization" was first coined by T. Levy in 1985, but there is still no agreed definition. According to the International Monetary Fund (IMF), "economic globalization refers to the increase in the scale and form of cross-border trade in goods and services and capital flows, as well as the widespread and rapid diffusion of technology that has increased the interdependence of the world's economies". According to the Organization for Economic Co-operation and Development (OECD), "economic globalization can be seen as a process in which economies, markets, technologies and forms of communication are increasingly global in character and national and local identities are diminishing". To this end, economic globalization can be understood in three ways: firstly, the strengthening of economic ties and the increasing interdependence of countries around the world; secondly, the growing convergence of domestic economic rules; a...
Read more