Reading 4: Economic globalization
Summary This article explains how TNC’s are influencing and involved in economic globalization. The scale and geographical distribution of TNCs In the first part of the article, Dicken talks about the growth of TNC’s, what is considered a TNC and where they are mostly located. TNCs can be very diverse. They can be big global companies, but also smaller companies that operate only in a few different countries. TNCs are mostly located in developed countiers, but the number of TNCs from developing countries is growing. Why and how corporations engage in transnational activities The second part explains the two reasons for companies to expand outside their own borders. The first reason is market-oriented investments and the second one asset-oriented investments. Market-oriented refers to the expantion outside of their home market, becaue of a low demand. Asset-oriented refers to the origin of the company’s natural resources and labour. The development of transnatio...