What is the relation between politics and globalization? -LIU XINRUI

 1.Summary

Reading 4 and the lecture both describe the relationship between economy and globalization as something that develops through ongoing interaction rather than a simple cause-and-effect process. One major idea is that TNCs (transnational corporations) are central to how today’s global economy works. They link production, labor, technology, and markets across different countries, turning separate national economies into connected networks.

Even though TNCs operate internationally, they don’t leave behind the influence of their home countries. Their management styles, expectations, and even workplace norms usually reflect where they originated. So globalization doesn’t create one uniform global economy. Instead, it deepens the connections between national economies while keeping many differences alive.

Reading 4 also explains that states are still important actors. They regulate foreign investment, sign trade agreements, protect intellectual property, and create the legal environment TNCs depend on. States also adjust their policies in response to global competition, whether by encouraging innovation, easing certain regulations, or trying to attract foreign capital. In short, economic globalization forms through the constant interaction between states, markets, and corporations.

2. Interesting Discoveries

One thing I found interesting is the idea that corporations don’t become “borderless” just because they expand globally. I used to think a global company would gradually lose its national identity, but the reading argues the opposite. Home-country institutions and culture continue to shape how TNCs operate abroad. This made me see globalization less as a process of removing national differences and more as a system where different national models interact on a global scale.

Another point that stood out is how competition and cooperation often happen at the same time among TNCs. Companies may fight for market share in one region while forming partnerships or sharing technology in another. This creates a complicated landscape where power is constantly shifting depending on the situation. It’s very different from the simple idea of globalization leading to a few dominant “super corporations.”

I was also surprised by how active states remain. I had assumed globalization weakens governments, but Reading 4 shows that states often reshape their policies to stay competitive. Creating special economic zones or offering tax incentives are examples of how states try to position themselves within global production networks. So globalization doesn’t eliminate state power—it changes how states use it.

3.Discussion / Concern

A few questions came to mind after reading this.

First, if states keep adjusting rules to attract TNCs, does this give corporations too much leverage? It might encourage governments to lower labor standards or environmental protections just to stay competitive.

Second, with digital technologies becoming more important, will tech-driven TNCs gain even more influence than traditional firms? If data becomes the main economic resource, platforms might be harder for states to regulate.

Third, globalization seems to benefit highly mobile actors like corporations much more than workers or local businesses. This could widen economic inequality both inside countries and between them.

Lastly, recent supply-chain problems and geopolitical tensions make me wonder if globalization is entering a new phase. Maybe the future will be more regional, or more politically controlled, rather than purely driven by economic efficiency.