What is the relation between economy and globalization?ㅣChoi Jaewon(최재원)

1. Summary

Based on the lecture and Reading 4 by Peter Dicken, I learned about the relation between economy and globalization. Many people think globalization is just selling goods to other countries. However, Peter Dicken says it is more complicated than that. He explains that there is a big difference between "internationalization" and "globalization." Internationalization is just the spread of economic activities across borders. But globalization is the "functional integration" of these activities. This means that the parts of the economy are working together like a one big machine.

The most important actor in this process is the Transnational Corporations (TNCs). These are huge companies that have factories and offices in many countries. Dicken argues that TNCs are the "primary movers and shapers" of the global economy. They decide where to make products and where to sell them. This decision is depend on where they can make the most profit. For example, they might design a phone in the USA, make parts in Japan, and assemble it in China. This is called a Global Production Network.

Another key point is the role of the state. Many people believe that because of globalization, the government of a country has no power. But Dicken disagrees. He says that the state is still very important. States and TNCs interact with each other. States want TNCs to come to their country to give jobs, and TNCs need states for infrastructure and laws. So, the relation between economy and globalization is not just about money flowing freely, but about how TNCs and states work together or compete.

Also, technology is a big driver. Without the internet and fast ships, this "global shift" of economic activity could not happen. The lecture also mentioned that this process creates a new geography of the world economy, where some places become very rich and others stay poor.

2. Interesting Discoveries

One of the most interesting thing I discovered from the reading is about the "state." Before this class, I thought that globalization means the end of the nation-state. I heard that companies are now bigger than countries. But Peter Dicken argues that this is a myth. He says states are actually very active. They create policies to attract companies. This was surprising to me because I usually hear that governments cannot control the global economy. It was interesting to learn that it is a bargaining process between TNCs and states.

Another interesting discovery was the concept of "Global Shift." I knew that many factories moved to Asia, but I did not know the details. The reading explains that this is not just a simple move. It is a complex reorganization. The map of the world economy is changing fast. It was also new to me that not everything is global. Dicken points out that much of the activity is still "regional," like within Europe or East Asia, rather than truly global. We often use the word "globalization" too easily for everything, but actually, it is often just regional integration.

I also found it interesting how TNCs control everything. They are like the spiders in the web. They control the "chains" of production. I didn't realize that a product I buy is made of so many parts from different places, and this whole system is managed by one big company. It makes me think about how connected we all are.

3. Discussion / Concern

After reading this, I have a concern about inequality. The text says that globalization creates "winners and losers." This is a big problem. If TNCs move their factories to a country where labor is cheap, the workers in the developed country lose their jobs. This is happening in many places. The economy grows, but not for everyone. The lecture mentioned that the gap between rich and poor is getting bigger. I worry that if this continues, there will be more conflicts.

Also, I have a question about the environment. The reading focuses on the economy, but what about the planet? If we ship goods all over the world, it uses a lot of oil and creates pollution. TNCs only care about profit, so they might ignore the environment. Dicken mentions that the state regulates this, but if states are competing to attract TNCs, maybe they will lower the environmental rules. This is called the "race to the bottom."

So, my discussion question is: Can the state really control the TNCs to protect the people and the environment? Or are the TNCs too powerful now? The relation between economy and globalization seems to benefit the big companies the most. I think we need to find a way to make this relation fair for normal people too. If the economy is global, maybe we need global rules, not just national rules. This is a difficult issue that we need to think about more deeply.

4. References

Dicken, Peter. Global Shift: Mapping the Changing Contours of the World Economy. 7th ed., The Guilford Press, 2015.

5. Note of AI Use

AI has been used limitedly and locally to find basic research materials and references to perform this task. Other blog posts have been written by my pure creation.

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