Economic Globalizations: Corporation

Question 1

Economic Globalization: Corporations (Chapter 14) author

Answer 1

Peter Dicken

Question 2

The business corporation that is the central actor and the primary shaper of the global economy.

Answer 2

Transnational Corporation (TNC)

Question 3

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.

Answer 3

1. East India Company
2. Hudson’s Bay Company

Question 4

The allegedly placeless giants whose operations span the globe and which owe no allegiance to any particular country or community.

Answer 4

Global Corporations

Question 5

It is an investment by one firm in another with the intention of gaining control over that firm’s operation.

Answer 5

Direct Investment

Question 6

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.

Answer 6

Foreign Direct Investment

Question 7

It refers to the situation in which firms purchase equity in other companies purely for financial reasons and not to gain control.

Answer 7

Portfolio Investment

Question 8

2 categories of Firms Transnationalization

Answer 8

1. Market-Oriented Investment
2. Asset-Oriented Investment

Question 9

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.

Answer 9

Asset-Oriented Investment

Question 10

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.

Answer 10

Natural Resource-Oriented Investment

Question 11

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.

Answer 11

New International Division of Labour

Question 12

2 major ways in which firms develop transnational activities

Answer 12

1. Greenfield Investment
2. Engagement with other firms

Question 13

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.

Answer 13

Greenfield Investment

Question 14

It involves the transfer of equity between companies or involves a shift in ownership and control of both firms’ entire assets.

Answer 14

Merge and Acquire (M&A)

Question 15

It is where relationships between partner firms are increasingly multilateral, rather than bilateral, polygamous rather than monogamous.

Answer 15

Networks of Alliances

Question 16

An alliance that also proliferate in the semiconductor industry to develop new generations of memory chips.

Answer 16

International Strategic Alliances

Question 17

A new component in the economic landscape for creating the new constellations of economic power.

Answer 17

Collective Competition

Question 18

These are entrepreneurial ventures which operate beyond their home territory from the outset.

Answer 18

Born Globals

Question 19

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.

Answer 19

Marc Chagall

Question 20

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.

Answer 20

Bearers

Question 21

A distinctive Japanese business groups that have been at the center of Japanese economic development during the post-World War II period.

Answer 21

Keiretsu

Question 22

In Korea, they are being drastically restructured and the relationships with the state reduced.

Answer 22

Chaebol

Question 23

4 ideal types of TNC

Answer 23

1. Multinational
2. International
3. Global
4. Integrated Network

Question 24

3 regions in the “Triad Regions” of transnational production

Answer 24

1. Europe
2. North America
3. East Asia

Question 25

It is where the establishment of the NAFTA is leading to a re-configuration of corporate activities to meet the opportunities and constraints of the new regional system.

Answer 25

North America

Question 26

It is where the increasing integration of the EU has led to substantial reorganization of existing corporate networks and the establishment of pan-EU systems by existing and new TNCs.

Answer 26

Europe

Question 27

It was probably the first major US company to recognize the potential of regional production when it established a pan-European structure in 1967.

Answer 27

Ford

Question 28

They don’t have the same kind of regional political framework as the Eu or NAFTA, there is very strong evidence of the existence of regional production networks organized primarily by Japanese firms.

Answer 28

East Asia

Question 29

4 countries in “Four Tigers”

Answer 29

1. Hong Kong
2. Korea
3. Singapore
4. Taiwan

Question 30

It is where all transnational production networks are influenced and embedded by.

Answer 30

Multi-scalar Regulatory Systems

Question 31

These are immensely significant in influencing the geography of transnational production networks.

Answer 31

International Regulatory Bodies

Question 32

This translates into complex bargaining processes in which, contrary to much conventional wisdom, there is no unambiguous and totally predictable outcome.

Answer 32

Territorial Asymmetry

Question 33

A firm which has the power to coordinate and control operations in more than 1 country, even if it does not own them.

Answer 33

Modern TNC

Question 34

There is geographical unevenness of markets; both the size and particular characteristics of markets influence the locational decisions of TNCs.

Answer 34

Market-Oriented Investment

Question 35

A formal agreements between firms to pursue a specific strategic objective, to enable firms to a achieve specific goal that they believe can not be achieved on their own only some of the participant’s business operation are involved; usually focused on specific business problem.

Answer 35

Strategic Collaboration