Reading Assignment 4: “Economic globalization" by Han Jiseung

 Summary

'International' companies, like East India companies, were formed mainly in trade or exchange in the 15th century. Since then, it has grown significantly through World War I. Today, there are numerous transnational companies in the world, of which a small number of TNCs dominate. 

TNC motives can be classified into market-oriented investments and asset-oriented investments.

Market-oriented investment; Still market-oriented investment is due to the saturated company situation. In order to increase profitability beyond the domestic market, expansion beyond the domestic market is necessary.

Asset-oriented investment; Natural resource-oriented investment has a long history, but the development of technology has allowed companies to access other assets distributed over a wider area. In particular, this is the case with human resources.

Geographic importance has a great influence on the formation of large TNCs. People show different behaviors depending on their region of origin, and no matter how the world changes, there will still be differences.  

Due to the geographical distribution across various political, cultural, and social phenomena, multinational corporations are more difficult to control than companies that are limited to a single national space. In other words, a more sophisticated organizational architecture is needed, and the organizational form occupies a dominant position with the times.

The TNC is powerful, but it does not have absolute power.



Interesting points

Personally, I am interested in geography and geopolitics. I felt once again that geography had a lot of influence on humans. Today, technology has advanced, and virtual spaces are expanding rather than physical 'spaces'. I was curious about what the expansion of virtual space would mean for mankind, which has been living on one earth.



Discussion

There are many multinational corporations operating in South Korea, too. South Korea is a country geographically located on a peninsula, but is effectively an isolated island due to the presence of North Korea. The language also speaks its own Korean, and it is a country with many unique and detailed policy regulations. How did South Korea's geographical and cultural uniqueness create barriers for multinational corporations to enter South Korea? And how were they able to overcome and settle down?

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