What is the relation between economy and globalization? - Kim younggyun

 1) Summarize

We recognize that transnational corporations (TNC) are powerful, cross-border organizations. However, Peter Dicken argues that TNC are actually more complex and diverse in the globalization discourse. He emphasized that while it is true that TNC do business in many parts of the world, they still have the institutional, cultural, and organizational characteristics of their home countries. He explains that the reason for the creation of the TNC is not to dominate the world, but to secure new markets or to gain assets that only exist in certain regions. TNC have strong influence, but they cannot achieve everything by themselves. These companies sometimes build extensive networks through cooperation, alliances, mergers, and acquisitions. With the rise of the TNC, people misunderstand that the state has completely read power. However, depending on the situation, the state also has the upper hand in negotiations with the TNC. This is because power relations are fluid depending on the situation and context.


2) Interesting point

What was interesting to me was that the TNC expands to the world with its own social and cultural background. A transnational corporation does not operate in the world without nationality. This is because a company is not just an economic organization, but a social product. It was also interesting to analyze that the relationship between the state and the company is not one-sided and depends on the situation. I was able to reconsider whether I had an exaggerated perception of the TNC.

There was something different from what I thought. The explanation was that strategic alliances between companies do not weaken competition, but rather create a new form of competition in which competition and cooperation coexist. I thought that strategic alliances between companies excessively increased the power of transnational companies and reorganized the supply chain around them.


3) Concern and Discussion

With globalization, TNC will move to more deregulated countries. Countries tend to ease regulations by competing with each other to attract companies. Singapore, for example, is attracting many financial companies by reducing corporate tax. However, this phenomenon can have an adverse effect on workers and communities who are less mobile than companies. If competition for deregulation between countries intensifies and TNC move from their original regions, an unbalanced negotiation structure may be created between workers and consumers and TNC.

Earlier, Peter Dicken emphasized that TNC do not necessarily have an upper hand in negotiations with countries. However, I wonder if these characteristics of TNC will continue in the future if the global supply chain becomes tighter and AI technology advances. So far, it seems clear that TNC cannot surpass countries. For example, Elon Musk recently unsuccessfully attempted to create a new political party. However, as humanity becomes more dependent on AI, the influence of the few TNCs that monopolize technology will gradually expand and one day, they may surpass the country. Perhaps the author is too optimistic about this situation.

4) References

  •  Dicken, P. (2007). Economic Globalization: Corporations. In The Blackwell Companion to Globalization, G. Ritzer (Ed.). https://doi.org/10.1002/9780470691939.ch14

    • I am not sure about the exact page number of the original text, as I am referring to the lecture materials uploaded by the professor.

    5) Using Ai

    I used GPT-5 to translate Korean text into English. 
    Other than simple translation , I did activities such as writing and composing paragraphs on my own.

    Comments

    1. Kim DonghaDecember 15, 2025 at 8:10 AM

      I read your paper carefully and found it very engaging overall. It clearly shows that you understand Peter Dicken’s argument about TNCs, especially the idea that they are not stateless or all-powerful actors but are still shaped by the institutional and cultural contexts of their home countries. I also appreciated that you went beyond simple summary and highlighted how the power relationship between states and TNCs is fluid and situation-dependent. Your discussion of deregulation, labor, and the possible impact of AI raised meaningful and critical questions. That said, there are a few places where wording errors or unclear expressions slightly weaken your argument, and the example of Elon Musk, while interesting, could be more clearly connected to the broader issue of TNC power. Overall, it is a strong and well-thought-out paper, and with clearer expression and tighter links between examples and theory, it could become even more convincing.

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