What Is the Relationship Between Economy and Globalization? - 전진이 (Jeon Jin E)

 1) Summary

Peter Dicken does not see economic globalization simply as "the expansion of markets across borders." His key argument is that the central actor of economic globalization is not an abstract 'market', but transnational corporations (TNCs). In other words, the global economy is not automatically integrated, but a result specifically created through companies' strategic choices and networks.

Dicken criticizes the commonly imagined image of a 'stateless global company that transcends countries'. In fact, most TNCs are still deeply **embedded** in certain countries and regions, and production, research, and marketing functions are geographically and unevenly distributed. Economic globalization is not a process of creating a homogeneous global space, but rather a method of utilizing differences and imbalances between regions.

In addition, economic globalization is not a single global production system, but a transnational production network intertwined like 'webs of enterprise'. Firms deploy production processes in various countries in segments and continuously reorganize them according to market access, labor force, technology, and regulatory conditions. In this process, the state is not excluded, but remains an important actor who constantly negotiates and coordinates with companies.


2) What was new and interesting: the dissolution of the myth of an economy without a place

The most impressive part of this article is the argument that economic globalization rather reveals the importance of geography and place more clearly. Contrary to the popular belief that as globalization progresses, all companies and methods of production will become similar, Dicken emphasizes that "capitalism exists in many forms, not as one."

In particular, it was interesting to note that transnational corporations are not formed in the institutions, cultures, and labor practices of each country, rather than "being that does not belong anywhere." The explanation that the institutions and values of the country where the corporate headquarters are located leave a long-term mark on corporate strategy, which also affects the way the production network is organized, shakes the view that the economy was viewed as a separate area from culture and politics.

It was also felt anew that economic globalization actually works more strongly at the regional level than necessarily at the global level. The explanation that production networks are organized at regional units such as the European Union, North America, and East Asia shows that globalization is a process of creating multiple connected economic spaces, not integration into 'one world'.


3) Problem consciousness and debate question: Who has the power of economic globalization?

However, this article leaves some important questions. First, the question is whether the bargaining relationship between transnational corporations and the state is always balanced. Although the author argues that the state is still an important regulator, in fact, in developing countries or areas with weak labor, corporate mobility often limits national policy. If so, it is necessary to further consider whether the power of the state remains equal to all countries or is only valid for certain countries.

Second, it is a question of how economic globalization structurally strengthens the imbalance between regions. The more strategically a company utilizes regional differences, the more certain regions may be incorporated into production bases, while other regions may be excluded. In this process, globalization provides opportunities for growth, and at the same time, there is a risk that it will act as a mechanism to fix inequality.

Finally, the position of labor and civil society is also an important issue. Businesses can cross borders, but labor does not. In this asymmetry, I think it is necessary to further discuss who economic globalization is designed to benefit and how labor and consumers can respond.


Conclusion

The relationship between economy and globalization is not just a matter of market integration. From Dicken's discussion, economic globalization is a complex and uneven process involving transnational corporations, countries, regions, and labor. Globalization de-territorializes the economy and at the same time reconstructs the importance of space and place in new ways. Therefore, economic globalization is not a complete state but a dynamic process created in constant negotiations and conflicts.




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