Lecture 5

Question 1

What are the perspectives on (global) production?

Answer 1

Question 2

What does TNC mean?

Answer 2

Trans[N]ational Corperation

Question 3

When did transnational production rise?

Answer 3

Question 4

How did the modern TNC rise up?

Answer 4

Question 5

What was the role of US hegemony in the rise of TNC?

Answer 5

Question 6

What did the collapse of the Bretton Wood system change? Why was this unexpected?

Answer 6

Question 7

What led to growth in TNC’s?

Answer 7

Question 8

What is the key measure of globalization of production?

Answer 8

Question 9

What has happend to the growth of FDI (Foreign Direct Investment)?

Answer 9

Question 10

What is GVC?

Answer 10

Global Value Chains

Question 11

What is the definition of GVC? By whom?

Answer 11

Question 12

What are questions regarding GVC’s governance? Wha are questions regarding accountability?

Answer 12

Question 13

What are questions about TNC’s regarding power?

Answer 13

Question 14

Why has the power of capital increased?

Answer 14

Question 15

What might globalization cause?

Regarding the economy obv.

Answer 15

Question 16

What are an additional sources of power of TNC’s?

Name two

Answer 16

Question 17

What does ISDS stand for?

Answer 17

International State Dispute Settlement

Question 18

What can ISDS do?

Answer 18

Question 19

What are questions regarding a borderless economy?

Answer 19

Question 20

How do companies use tax havens?

Answer 20

Question 21

What are signs of steps towards deglobalization?

Answer 21

Question 22

What are now most of the worlds exports?

i.e. what types of goods

Answer 22

Intermediate goods

Question 23

What are some mercantilist concerns about global production?

Answer 23

• It is destroying local production and driving down wages of blue-collar workers.
• Because production isn’t local anymore there could be less innovation

Question 24

What is insourcing?

Answer 24

The idea that local companies have an incentive to bring some manufacturing back to their origin, because local worker costs have dropped.

Question 25

How do TNC's affect competition?

Answer 25

Many TNC's have been involved in mergers, these have reduced competition

Question 26

What is an alternative name for GVC?

Answer 26

Global Production Network (GPN)

Question 27

What is BPO?

Answer 27

Business Process Outsourcing

Question 28

What is the Multilateral Agreement on Investment?

Answer 28

It was an agreement that intended to create a regime to govern FDI in the same way the WTO organizes trade. I.e. if a TNC invests in a local subsidiary, it should be treated the same as a local business.

Question 29

What is the intened goal of an ISDS?

Answer 29

If companies are not treated fairly by local courts they can dispute those decisions there.

Question 30

Why are ISDS controversial?

Answer 30

Countries lose some sovereignty and because disputes are resolved through arbitration decisions are not always public.

Question 31

How do have TNC's have leverage over states?

Answer 31

Because they can invest in many places they force governments to compete to get their investment.

Question 32

What is tax inversion?

Answer 32

A company merges with a smaller/largely non-existent company in a low tax country.

Question 33

What is BEPS? What does it stand for?

Answer 33

Base Erosion and Profit Shifting, TNC artificially shift profits to low tax countries.

Question 34

Who are most critical of TNC’s?

Answer 34

Structuralists

Question 35

What are some alleged consequences of globalization?

Answer 35

More inequality and less people working on long term contracts, locally, but also internationally.

Question 36

How do strcuctualist scholars look at this increasing globalization?

Answer 36

They believe that this increases exploitation of workers, however now also internationally

Question 37

What are SWFs?

Answer 37

Sovereign Wealth Funds

Question 38

What is Socially Responsible Investing?

Answer 38

An investment method where people separate themselves from illegal markets by putting their money in investments funds that avoid companies or countries that are perceived as socially or environmentally unethical

Question 39

How are illicit activities often combatted? Why is this ineffective?

Answer 39

Politicians often go after the supply side, since this would not affect their own citizens. However this often has unintended consequences, i.e. a balloon effect.

Question 40

What is the restriction-opportunity dilemma? How is it also often called?

Answer 40

The more you try to ban something, the more profitable it becomes, thus thereby incur aging even more criminal activity, a.k.a. The profit paradox.

Question 41

What is the flag of convenience? What is meant by commercialization of sovereignty? How are these connected?

Answer 41

Flag: register somewhere where national governments have no interest in proper behavior Sovereignty: renting out commercial privileges and protections to citizens and companies from other countries.

Question 42

What are know-thy-customer rules and name-and-shame campaigns? How are they connected?

Answer 42

1: screen customers, 2: attention to illicit and unethical activities. Used to create new norms.