What is the relation between economy and globalization? – Kim Dongha

1. Summary

Transnational corporations (TNCs) are often described as powerful actors in globalization, but their role is sometimes misunderstood. Many people assume that these corporations are stronger than nation-states and can operate without clear limits. However, Peter Dicken argues that this view is somewhat exaggerated.

According to Dicken, most transnational corporations are still closely tied to their home countries. Even though they operate in many different countries, important decisions are usually made at headquarters. In this sense, TNCs are global in where they operate, but they are not completely independent from national systems.

Dicken also explains why companies choose to expand overseas. Firms often look for new markets or try to access resources such as skilled labor, technology, or knowledge that are not evenly distributed around the world. Because of this, globalization does not erase differences between countries. Instead, it often reflects existing economic gaps.

Overall, the relationship between transnational corporations and states is complex. TNCs clearly have influence, but their power depends on negotiations with governments, national regulations, and political conditions.

2. Interesting Points

One point I found interesting is that transnational corporations are not “stateless.” Even large global companies still carry the culture and business practices of their home countries. This helps explain why companies from different countries may act differently, even when they compete in the same global markets.

Another important idea is that globalization does not make all countries equal. Transnational corporations tend to choose locations that already have advantages, such as good infrastructure, stable institutions, or educated workers. Because of this, high-value economic activities are concentrated in certain regions, while other areas remain less developed.

I also found it interesting that globalization is not something fixed or finished. Instead, it continues to change based on decisions made by companies, governments, and workers. This makes globalization an ongoing process rather than a final outcome.

3. Concerns and Problems

Despite these insights, there are still several concerns related to transnational corporations. One major issue is inequality between countries. While stronger states may be able to regulate corporations more effectively, weaker states may feel pressure to reduce regulations in order to attract foreign investment.

Another concern is that some national economies depend heavily on a small number of large corporations. When a few firms play a key role in employment or exports, governments may hesitate to regulate them strictly. This situation can create an imbalance of power between states and corporations.

These issues suggest that globalization can limit the policy choices available to certain countries, especially those with fewer economic resources.

4. Points for Discussion

These concerns raise several questions worth discussing:

• How can governments support transnational corporations while still regulating them fairly?
• Do weaker states really have bargaining power when negotiating with global companies?
• Can international cooperation help reduce inequality between states and corporations?

Thinking about these questions may help us better understand how globalization should be managed in the future.

5. Conclusion

Transnational corporations are important actors in the global economy, but they do not operate without limits. As Peter Dicken explains, their power is shaped by national institutions, regulations, and political negotiations. Globalization does not eliminate the role of the state, but it does change how states and corporations interact.

If globalization is to lead to positive outcomes, issues such as fairness, regulation, and inequality need to be taken seriously. By recognizing the limits of corporate power, societies may be better able to work toward a more balanced and sustainable global economy.

References

Dicken, P. (2007). Economic globalization: Corporations. In G. Ritzer (Ed.), The Blackwell Companion to Globalization. Blackwell.

Use of AI

Helped with organization and language refinement.

Comments

Post a Comment

Popular posts from this blog

What is globalization--Kim younggyun

 1) Summarize From what I understand, globalization is not merely an economic trend. It is a broad concept in which the world becomes increasingly interconnected on cultural, social, political, and even individual levels. Because globalization is such an all-encompassing idea, it is only natural that debates continue over its definition. This is exactly what made studying the concept of globalization difficult for me. That is why, like Robertson and White, I tried to understand globalization mainly through the two dimensions of increasing connectivity and growing consciousness. I find their approach persuasive. When internet, transportation, and trade expand, the connections between countries grow stronger, and naturally, people begin to perceive the world as a “single place.” 2) Interesting point What I found particularly interesting while studying globalization is that it does not simply lead to “one-sided homogenization.” I used to think of globalization only as the expansion of...
Read more

What is globalization? | Yun Shinji

1.   Summary It is difficult to define the concept of ‘globalization’ with a single meaning, as the term is used in various contexts with different implications. Sociologist Roland Robertson describes globalization as “the compression of the world and the intensification of consciousness of the world as a whole". Robertson and White further elaborate it as two main trends “an increase in global interconnectedness” and "an increase in global consciousness". In this way, globalization is a complex phenomenon in which the world becomes closely connected across borders, and it is used in multiple ways in different contexts. Globalization can be broadly divided into three dimensions cultural, political, and economic. Among them, cultural globalization is the phenomenon we experience most directly in our daily lives. For example, a cultural content that becomes popular can spread worldwide and be shared globally. However, this phenomenon also raises concerns about cultural hom...
Read more

What is globalization? (TRAN THUY NGA/ 짠 튀 응아)

What is globalization? 1. Summary of the Reading Roland Robertson and Kathleen E. White’s chapter “What Is Globalization?” offers a careful, multi-layered attempt to describe a phenomenon that has become both a powerful reality and an intensely debated concept. They begin by acknowledging that  globalization is an essentially contested concept : scholars from different parts of the world and from different disciplines approach it with varying assumptions and no single agreed-upon definition. The authors trace the word’s rise in public discourse: although the processes we now associate with globalization long-distance trade, migration, cultural exchange stretch back centuries, the term itself only became widely used after the fall of the Berlin Wall in 1989 and the partial collapse of communism. This historical moment gave globalization a new political and economic resonance, yet its roots are far older. Robertson and White emphasize that debates often split between those who see g...
Read more