Economic Globalization
There is a clear consensus that the business corporation – specifically the transnational corporation (TNC). To provide a depiction and explanation of the nature and significance of TNCs in the processes of economic globalization, there is an approach focused on five related issues: the scale and geographical distribution of TNCs in the global economy; why and how corporations engage in transnational activities; the geographical embeddedness of transnational corporations; the ‘webs of enterprise’ manifested in transnational production networks; the power relationships between TNCs and other actors in the global economy.There is an increasing diversity of TNCs in the global economy. The reasons why business firms extend their operations outside their home countries are complex and highly contingent on particular circumstances. But, although there is variety of reasons for TNC activity, it can be divided by two concepts: market-oriented investment and asset-oriented investment.Developments in transportation and communications technologies, as well as in production process technologies, have facilitated the transformation of the geographical extent over which a TNC can separate out its different functions as well as their precise geographical configuration.
I think this part is very interesting for me. TNC is a convergence of business-organizational forms towards a single ‘placeless’ type. This is because, over time, and under specific circumstances, societies have tended to develop distinctive ways of organizing their economies capitalism comes from many different varieties. Also, such distinctive forms tend to persist over time, even though they may become modified ‘at the margin’ through interaction with other social systems of production.
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