Summarize
The author is talking about economic globalization in this book.
While no opinion on economic globalization has been negotiated, it is said that business actors, especially TNCs, are a key component of the global economy, a centralized state. In fact, it is mentioned in many ways as well. Now we are living in a global corporation that transcends national boundaries so that we can no longer operate in our own country. But this is a very wrong stereotype. So the author wanted to break this stereotype. The purpose of this book is to provide a subtle description and explanation of the nature and importance of multinational corporations in the process of economic globalization. This approach is firmly grounded in the existence of differentiated empirical realities. It also provides a theoretical rationale for understanding the phenomenon that is actually very complex at the same time.
The author is focusing on five related issues.(1) Size and geographical distribution of multinational corporations in the world economy: Multinational corporations operate worldwide and do not pledge allegiance to certain countries or communities. That is, all countries are their customers and consumers. They are so large and can not ignore their influence. Their commonality is that they operate in different political, social and cultural environments. Therefore, strategic management is very important. (2) Why do companies engage in multinational activities?: This can be seen in two ways. Market-oriented investment and asset-oriented investment. Market-oriented investment means expanding the market because its market is already saturated. Asset-oriented investments are geographically unbalanced in the way they make and sell products. For example, there are various reasons such as raw material labor costs and land prices. That's why their assets are going to rise to where they can get the most efficiency. 3) Geographical integration of multinational corporations: Any country should consider its cultural, social, political and economic components. That is why companies should consider their characteristics even if they make excellent products. 4) 'Corporation / Enterprise': Multinational network: means that they have to work together and work together. (5) Power relations between multinational corporations and other countries in the world economy: Multinational corporations do not have the absolute power that is often said. We must work through negotiations and alliances with several other countries. These are what the author mentioned.
Interesting
The most interesting part of the book is that multinational corporations should start businesses, taking into account the cultural, social, political and economic scale of each country. In fact, there is a huge conglomerate called Samsung in Korea.The brand image and awareness of Samsung is very good so that people around the world know that Samsung does not know about Korea. The reason why Samsung could become such a big company around the world is that there is a system called ' Regional Specialist ' in Samsung. The system sends about 250 employees annually and sends them overseas. They go to the country to learn languages and experience their culture, society, and politics. They are learning very local information. Not only does Samsung pay them their salaries, but they also pay for their living expenses.
The amount of money they spend on living is about 100 million a year, and Samsung is boldly implementing this system based on the fact that overseas information is more important even if it is taken care of. Experts say this is a very innovative system and its value can not be said.
In addition, large corporations in Korea as well as Samsung are implementing this system as an example. This is an example of how Samsung has survived in many multinational companies.
Discussion
The writer continues to write that multinational corporations are neither perfect nor absolute.
This can be seen as advocating a multinational corporation. It is a great honor for multinational corporations to contribute socially and economically to the rest of the world. But I'm not that way. The author says that each country has different political, social, geographical and economic sizes. Then, what will happen to the problems that arise? The governments of the dispatched multinational corporations in each country differ from the management policies from the beginning.
The manual is different when something bad happens. An example is McDonald 's patty case in Korea. patty's a hamburger that's not completely ripe.
One child died after eating. Families complain, but the head office is telling the Korean branch to speak to the head office, and the governor is keeping tabs on each other.
If a branch improves its brand image, all branches in the world will be better at the same time, but if they do wrong, they will have different operating policies, which will ultimately be the responsibility of all victims.
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