Summary
The globalization which was caused by advance of technology affects to economical areas. The world has become more interdependent as rising of international trade and their specialization. People can use some goods as a cheaper price that cannot produce in their own nation in the past time. Our world make WTO(World Trade Organization) for operating these trade. It means that the economy has become globalization.
This article focus on the TNCs(TransNational Corporations). TNC is a corporation that do a global commercial activities based on their own country. They grow in the period of World War 1 that was occurred in 1914. The global-scale war needed many war supplies so some firms can grow largely. Now, they have powerful economical abilities than the nation-state. It is caused by geographical extent.
Despite TNC develops these days, their investment continues to be market-oriented. And second reason of firms engage in transnational investment is assets that firms need to produce and sell products are also geographically very unevenly distributed. TNCs has complex process to embedding in society. The complex process includes some interaction and place-specific characteristics.
For these reasons, TNCs form the dynamic networks. Despite of dynamic networks the maintenance of TNC is much harder than the normal firms. TNC's headquarter is located in their own country, even the functions of headquarters may be handled by their branches in other countries. So the transnational networks is the essential one. Also TNCs is related largely to other firms. They have relationship as supplier and consumer.
In case of Europe, EU(European Union) maintains the oldest economic cooperation. In fact, the EU forms the political, social bonds as well as economy. In economical aspects, Economic cooperation, such as tariff elimination, seeks to cooperate not only in economics but also in other social factor's unification. However, the EU faces conflicting interests in terms of unity among different nations. The differences in culture, language, race and currency occur some conflicts in EU.
Interesting Things
Before I learned this lecture, I didn't know that what is TNC. TNC is very familiar things such as Korean conglomerate firms(Samsung, Hyundai,..). TNC affect to their country and the whole world.
It has come to the situation where people interact with each other wherever they live. The advent of large corporations has expanded the choice of people's spending. So I think the world economy is unified and the interests of the nations are becoming clearer. The side effect of this globalization is conflicts of interest within the national interests of the nation, as described in article. It is quite interesting to note that this phenomenon is a real phenomenon called the "BREXIT"
Discussion Point
After reading this article, we learned that the economic globalization give us many conveniences but there is also adverse effects. Now countries around the world have an economic agreement with other countries that match their interests. But in 2008, people opposed the nation's plan to hold a large-scale candlelight rally in Korea. Also, in 2016, farmers held rallies for the price of rice. During the repressive process, one person died from a police crackdown on water cannons. As such, the nation which is deputy of the public can not represent all the people. In particular, the economic agreement is a cautious matter in terms of having a direct impact on individuals. How should the nation reconcile the public opinion of the opposing people?
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