Lecture 5 Flashcards
What are the perspectives on (global) production?
What does TNC mean?
Trans[N]ational Corperation
When did transnational production rise?
How did the modern TNC rise up?
What was the role of US hegemony in the rise of TNC?
What did the collapse of the Bretton Wood system change? Why was this unexpected?
What led to growth in TNC’s?
What is the key measure of globalization of production?
What has happend to the growth of FDI (Foreign Direct Investment)?
What is GVC?
Global Value Chains
What is the definition of GVC? By whom?
What are questions regarding GVC’s governance? Wha are questions regarding accountability?
What are questions about TNC’s regarding power?
Why has the power of capital increased?
What might globalization cause?
Regarding the economy obv.
What are an additional sources of power of TNC’s?
Name two
What does ISDS stand for?
International State Dispute Settlement
What can ISDS do?
What are questions regarding a borderless economy?
How do companies use tax havens?
What are signs of steps towards deglobalization?
What are now most of the worlds exports?
i.e. what types of goods
Intermediate goods
What are some mercantilist concerns about global production?
- It is destroying local production and driving down wages of blue-collar workers.
- Because production isn’t local anymore there could be less innovation
What is insourcing?
The idea that local companies have an incentive to bring some manufacturing back to their origin, because local worker costs have dropped.
How do TNC’s affect competition?
Many TNC’s have been involved in mergers, these have reduced competition
What is an alternative name for GVC?
Global Production Network (GPN)
What is BPO?
Business Process Outsourcing
What is the Multilateral Agreement on Investment?
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.
What is the intened goal of an ISDS?
If companies are not treated fairly by local courts they can dispute those decisions there.
Why are ISDS controversial?
Countries lose some sovereignty and because disputes are resolved through arbitration decisions are not always public.
How do have TNC’s have leverage over states?
Because they can invest in many places they force governments to compete to get their investment.
What is tax inversion?
A company merges with a smaller/largely non-existent company in a low tax country.
What is BEPS? What does it stand for?
Base Erosion and Profit Shifting, TNC artificially shift profits to low tax countries.
Who are most critical of TNC’s?
Structuralists
What are some alleged consequences of globalization?
More inequality and less people working on long term contracts, locally, but also internationally.
How do strcuctualist scholars look at this increasing globalization?
They believe that this increases exploitation of workers, however now also internationally
What are SWFs?
Sovereign Wealth Funds
What is Socially Responsible Investing?
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
How are illicit activities often combatted? Why is this ineffective?
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.
What is the restriction-opportunity dilemma? How is it also often called?
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.
What is the flag of convenience? What is meant by commercialization of sovereignty? How are these connected?
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.
What are know-thy-customer rules and name-and-shame campaigns? How are they connected?
1: screen customers, 2: attention to illicit and unethical activities. Used to create new norms.
