W14. Economic Globalization_Jo Sungbin

1. Summary

Economic Globalization: Enterprises
This chapter focuses on five related issues.(1) Size and geographical distribution of transnational corporations in the world economy.(2) Why do companies engage in multinational activities?(3) geographical inclusion of transnational corporations.(4) 'Corporate spiders' in transnational corporations networks.(5) Power relations between transnational corporations and other countries in the world economy.
Size and geographical distribution of trading companies:Until the second half of the 19th century, there were no companies engaged in manufacturing and production in countries other than their home countries. However, beginning in 1914, just before World War I, many European manufacturing companies in the United States, Great Britain, and continental Europe were becoming more multinational. Since then, over the last 50 years, the number of multinationals in the global market has grown exponentially. Providing the most comprehensive definition of modern TNC (transnational corporation) and the basis of the discussions in this chapter is 'a company with the authority to coordinate and control operations in many countries, even if they do not own it'.
UNCTAD estimates that about 61,000 TNCs are currently carrying out international production in more than 900,000 foreign subsidiaries. It accounts for one-third of global exports. However, this is produced by a small number of TNCs. The top 100 companies in the world account for 14% of sales, 12% of assets and 13% of employment of foreign companies worldwide. Companies like General Motors, Royal Dutch Shell, IBM, Toyota, Unilever and others are stronger than many countries.
In fact, TNCs are available in all forms and sizes, from so-called global companies operating in many countries to transnational corporations operating in only one or two countries outside your home country. What they have in common is that they operate in different political, social and cultural environments. To this end, they invest in 'direct', 'foreign' direct, and 'portfolio'.
Many of the world's transnational corporations start from developed countries. In fact, most of the FDI consists of cross-investment between developed countries. In developing countries, there is also a significant increase in FDI.

Why is the company supranationalized?
The reasons and methods for expanding business outside business are complex and very complex in certain situations.
Market-oriented investmentThe company may have reached saturation in the domestic market. Therefore, to increase profitability, the market must be able to expand beyond its own territory.
Asset-oriented investmentThe geographical imbalance of the market is one of the main reasons why companies are engaged in transnational investment. Due to the regional disparity in distribution from natural resources to human resources, companies do not mind transnational investments.
 'WEBS OF ENTERPRISE': TRANSNATIONAL PRODUCTION NETWORKSMultinational production network In general, TNCs can be viewed as 'dense networks at the heart of relationships', just like corporations. There are many different ways in which the TNC's internal network is organized, geographically organized, and connected to suppliers and customers' external networks.Due to the geographical nature of the economy, cultural and social environment, multinationals are much more difficult to coordinate and control than those companies whose activities are limited to a single national space. Therefore, a more sophisticated organizational structure is required. 
Multinational production networks organized on a regional scale are evident in most parts of the world, but especially in Europe, North America and East Asia.
Establishing NAFTA in North America allows us to reconfigure business activities (especially Mexico) to meet the opportunities and constraints of new regional systems.
As the integration of the EU in Europe has increased, the existing company network has been restructured and a new EU system has been created by existing and new TNCs. In fact, strategic tensions between global integration and regional response are at the EU level.
Although there is no regional political system of the same kind as East Asia, some Asian companies outside of Asia also tend to organize production networks locally, but there is strong evidence for the existence of local production networks.

2. Interesting contents

I am usually somewhat pessimistic and often imagine extreme imagination. Therefore, when studying globalization, I used to imagine pessimistic about the problems of globalization. At the heart of it was always the power of a corporation or state based on huge capital like TNC. The risk that their capital, cultural, and educational impact will act as general hegemony. I was worried every time through class time and online assignments that this would be a new type of colonization. Each time you study through the assignments, these worries disappear and become stronger. The same is true for this task. But I still do not feel anxious.

Surely this task was good because I could learn about the background of the appearance of TNC and the economic nature of the company based on their characteristics. And finally, the intervention of power between TNCs based on state and territory was very interesting to me.

But I do not think TNC is more nationally based. Like the contents of the book, they already have stronger strength than some nations. Although they are under the law and under the power of national authority, it means that there is a strong gaps in the law that can firmly regulate them. In the case of Samsung, it is a company based on Korea. But now their executives are more Asian than Asian, rather than Korean. Also, most of the finances they have are foreign capital. And through these things, they have a lot of slush funds, cannibalism, and so on. Is this a problem for Samsung alone? German automakers such as Volkswagen and Audi, TNC automobile companies are more correct expression, exhaust gas volume has been manipulated and hit the world. And his damage was done to the consumers who were left alone in power.

What about developing countries? There are children who work as parts of a machine without the human rights of workers, from countries with industrial systems that have lost their subjectivity by the TNC like coffee republic and banana republic.

It was a good experience to be able to understand the analysis and definition of the TNC through this assignment, but I would like to further study the negative parts brought by the TNC.

3. Discussion point

Following the above, where do you think responsibility for the ethical issues that the TNC brings to you should be in charge of redemption? Is this the first time a company has taken its place? Is the country with the largest share of the enterprise? Or the World Union?