Economic Globalizations: Corporation Flashcards
(35 cards)
Economic Globalization: Corporations (Chapter 14) author
Peter Dicken
The business corporation that is the central actor and the primary shaper of the global economy.
Transnational Corporation (TNC)
2 of one of the chartered trading companies, which emerged in Europe from the 15th century that played extremely important roles in the evolution of an increasingly interconnected political economy.
- East India Company
- Hudson’s Bay Company
The allegedly placeless giants whose operations span the globe and which owe no allegiance to any particular country or community.
Global Corporations
It is an investment by one firm in another with the intention of gaining control over that firm’s operation.
Direct Investment
It is simply direct investment that occurs national boundaries, that is, when a firm from one country buys a controlling investment in a firm in another country or where a firm sets up a branch of a subsidiary operation in another country.
Foreign Direct Investment
It refers to the situation in which firms purchase equity in other companies purely for financial reasons and not to gain control.
Portfolio Investment
2 categories of Firms Transnationalization
- Market-Oriented Investment
- Asset-Oriented Investment
The second set of reasons derives from the fact that the assets that firms need to produce and sell products and services are also geographically very unevenly distributed and, therefore, may need to be exploited in situ.
Asset-Oriented Investment
It is where the developments and communications technologies, as well as in production process technologies, have increased the ability of firms to access other unevenly distributed assets on increasingly wide geographical scales.
Natural Resource-Oriented Investment
It sprang into prominence in the literature of the 1970s and 1980s that was based upon the claims that firms in the Western industrialized countries were fleeing the constraints of high-cost, militant labor to tap cheap and malleable labor in developing countries.
New International Division of Labour
2 major ways in which firms develop transnational activities
- Greenfield Investment
- Engagement with other firms
It is simply building of totally new facilities and it adds up to the productive stock of both the firm itself and the country/community in which it occurs.
Greenfield Investment
It involves the transfer of equity between companies or involves a shift in ownership and control of both firms’ entire assets.
Merge and Acquire (M&A)
It is where relationships between partner firms are increasingly multilateral, rather than bilateral, polygamous rather than monogamous.
Networks of Alliances
An alliance that also proliferate in the semiconductor industry to develop new generations of memory chips.
International Strategic Alliances
A new component in the economic landscape for creating the new constellations of economic power.
Collective Competition
These are entrepreneurial ventures which operate beyond their home territory from the outset.
Born Globals
The Russian painter that once observed that every painter is born somewhere, and even is later he responds to other surroundings, a certain essence, a certain aroma of his native land will always remain in his work.
Marc Chagall
a A characteristic which then interact with the place-specific characteristics of the countries and communities in which they operate to produce a set of distinctive outcomes.
Bearers
A distinctive Japanese business groups that have been at the center of Japanese economic development during the post-World War II period.
Keiretsu
In Korea, they are being drastically restructured and the relationships with the state reduced.
Chaebol
4 ideal types of TNC
- Multinational
- International
- Global
- Integrated Network
3 regions in the “Triad Regions” of transnational production
- Europe
- North America
- East Asia
