Blog Assignment 4: What is the relation between economy and globalization? - YUERONG WANG
Summary The article focuses on five interconnected issues: (1) the scale and geographical distribution of multinational corporations (MNCs) in the global economy; (2) the reasons and modes of MNCs engaging in cross-border activities; (3) the geographical embeddedness of MNCs; (4) the "enterprise network" in multinational production networks; and (5) power relations between multinational corporations and other actors in the global economy. Multinational corporations play a crucial role in the international economy, originating from the 15th century with charter trade companies such as the East India Company and the Hudson's Bay Company laying the foundation for global trade. In the latter half of the 19th century, manufacturing companies began internationalizing, and in the past 50 years, giants like General Motors, Shell, and IBM have become prominent players in the global economy. The motivations for corporate internationalization are mainly categorized as market-drive...