W14 Economic Globalization/ Mina Kim

1. Summary

In this article, we focus on analyzing Transnational corporation. Abbreviation is TNC. The definition of a transnational corporation (TNC) is "a company that has the authority to coordinate and control operations in many countries, even if they do not own it." TNC activities are generally measured using foreign direct investment (FDI) statistics. This means the disappearance of the national boundaries because it invites the participation of many countries. It will play an important role in the global economy. However, the problem is emphasized as the need to broaden the scope of the investing country because the investing country is limited to a few countries. Recently, many companies are pursuing multinational corporations. The reason for this is to make market-oriented investments and to make asset-oriented investments. The market has already been saturated in the domestic market, and companies decide to grow into a multinational company in order to pursue profits. In addition, the resources that the country has are limited, and because it has the resources needed by the business in other countries, it decides to go outside. Such a multinational corporation is not necessarily made up of foreign companies. The influences and strengths in the domestic market can be seen as adaptation and success in overseas markets.

In this process, the importance of 'geography' is emphasized. Cultural, social, political, and economic factors. Because their geographical influence is so strong, companies often consider 'geographical features'.
However, the geographical scope of a multinational production network varies greatly. It is a true 'global' benefit. In this process, however, a group with a continuous market has the advantage of geographical proximity and creates a coalition. Representatives include the European Union and the North American Free Trade League. It can effectively respond to organizational barriers, and can be an ideal answer to competitive pressures for organizational responsiveness and global integration.

One example is the European Union. The European Union is a multinational enterprise network that transcends borders and forms a trade network. It is a huge international production complex. It also uses language and cultural differences to control the demand for goods and services. Strategic tensions between global integration and regional response are being made in the EU.

The importance of multinational corporations can not be overlooked in the process of building these associations. Many companies are transforming into transnational in the early stages of development. The world economy connects clusters of various types of corporate networks in a variety of ways. However, these multinational corporations appear to be widespread worldwide, but may be geographically limited. But one thing is for sure, everyone can connect to a multinational network.



2. Interesting point

What I was very empathic with reading was that many companies are trying to go to multinational companies. In the past, I thought that Korean companies were wonderful when they exported them overseas, advertised them through factories or overseas. However, nowadays, I think that Samsung advertisement in Times Square of New York does not have any casualties. In other words, we are getting used to the form of this multinational corporation. As the number of these multinational corporations increases, countries that are geographically close together form alliances for mutual benefit. This is both a benefit to the global economy and an element of anxiety. But what can not be denied is that it has influenced the creation of a global network. Before I read the article, I thought that the information I knew about multinational companies was just for the sake of the labor force or to make more money. However, after reading this article, it was interesting to know what a multinational corporation means and why many companies are changing.


3. Discussion point

As many multinational corporations are globalized, the boundaries between countries are falling. However, his background had success in his own country. In this process, should multinational corporations necessarily add their own interests in the same market?