Reading 4: “What is the relation between economics and globalization?”. - LAOXINYI

 1）Summary

In Economic Globalization, Peter Dicken focuses on how multinational corporations (TNCS) play an important role in the global economy. He touched on five key points: the size and distribution of multinational corporations, why and how they expand into international markets, the geographical links between multinational corporations and the regions in which they operate, how transnational production networks are built, and the power relationships between multinational corporations and other actors in the global economy. In contrast to what many people think of multinationals as "placeless" global entities, Dicken emphasized that these companies are still deeply influenced by the social, cultural and political environments of their own countries, as well as the places where they operate.


2）New, interesting, or unusual items

In this article, I learned two new and interesting concepts:

1）Embeddedness of TNCs: An interesting point is that even large multinational corporations remain closely linked to their own countries and are influenced by national contexts. This is at odds with the perception that multinational companies are completely detached from specific countries.

2）"Born Globals" : Another interesting concept is the rise of "born globals" companies. Such companies expand internationally from the start, rather than dominating the domestic market and then going global.


3）Questions, concerns, or discussion

Given that most TNCS are from developed countries, there are concerns about increasing economic inequality between developed and developing countries. How should global economic policy be adjusted to ensure that the benefits are more evenly distributed so that all regions benefit?

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