W4. Economic Globalization / Yun Hui Shim

Economic Globalization : 'About TNC'

1.summary

This article covers issues for multinational corporations. The economy of the fifteenth century was interconnected based on trading companies. The main presence of the company was also proved through trade and exchange. Multinationals have grown exponentially over the last 50 years. Interesting is the definition of TNC. 'A company that has the authority to coordinate and control operations in many countries, even if they do not own it.'

But recently global companies are called irresponsible big companies. It is because it does not require allegiance to a particular country or community as it operates throughout the world. Nevertheless, there is a reason why companies are constantly transnationalized. The reason for this can be seen in two categories: market-oriented and asset-oriented. Market-oriented investment is to expand the market beyond its own territory in order to increase profitability. The reason for investing in an asset is that companies in the natural resources industry need to find sources as needed, but subsequent processing of resources often occurs near the market. . In particular, there is an increasingly highly skilled and strongly motivated worker in a 'good quality' community that has a very strong impact on TNCs. This article cites Bangalore's IT cluster.

Of course, I believe that the most important thing of a multinational company is to maintain a 'dense network at the center of relations'. What networks are connected and how they are structured and geographically played an important role.

2. Interesting points

There are a few things I particularly think of when reading this article. One of them is that multinational corporations operate in different political, social and cultural environments. The second, nonetheless, is that the majority of the world's top 100 multinational corporations still maintain more than half of their activities in their own countries.

Finally, companies are made up of highly complex and dynamic production and consumption networks, but multinational corporations seem to have some freedom in their own way. Recently, sanctions for multinational corporations have become issues. As the global IT age worsens, it is a big problem that the tax avoidance behavior of multinational corporations that transfer income using the difference of tax system between countries is spreading.

I cite the recent controversial news. [Australia, multinational companies and 'tax war' ... Google, etc. "Get a fair share"] is an article. State taxation authorities are pressuring them to pay taxes to multinational corporations that are known to pay less taxes than Google and Facebook.

It has been receiving more taxes than before, but it is still lacking and it is reported that it plans to conduct a joint investigation with foreign authorities such as Europe, and is raising the pressure level for collecting taxes. I have learned from this article that multinational corporations can exert a powerful force in the flow of globalization, but ultimately can not exercise absolute power in front of the country.