THE GLOBAL ECONOMY

Who runs the global economy: the global market or transnational corporations?



Who runs the Global Economy: The Global Market or Transnational Corporations?

Introduction

The globalization of production, starring the transnational corporation (TNC) is a key element in understanding the globalization of the economy. Although in a sense there are multinational companies since the late nineteenth century, these were almost exclusively in the extractive sector, so that modern transnational corporation is essentially a phenomenon after World War II. This multiplication of TNCs has occurred despite the waves of mergers and takeovers, causing a tremendous concentration of power to each economic sector being under the dominion of a handful of large companies. However, they often exaggerate the importance that multinationals have on production and trade, ascribing such as the 200 largest TNCs control more than a third of world production.

Discussion

The multinational company is characterized by having as field of action the global stage, regardless of size, economic sector or activity. The point of a business in the face of internationalization is not so much their size but their mentality, overcoming barriers and understand the world current globalized scenario to develop their business activities. Being prepared and knowing the internationalization allow the company remain competitive (Yeung, 2009). We can say that today, any company not have the possibility in its strategy of internationalization is difficult that is competitive and almost impossible to grow.

The term multinational refers to a multiple number of nations, and has become very common to use when talking about companies located also in many nations. Transnational extends through several TNCs (Mariana, 2008). Both terms are synonymous. Multinationals are ability to expand production and other operations in the world, move industrial plants from one country to another and its importance in the global economy has increased the economic restructuring and globalization. The mentality of the business is global, a global perspective on their business on the market markets (customers), services and products, where the target market is the totality of the world. These companies are characterized by multi-teams discipline with employees of both the origin and nationality of destination. Despite the economic power they currently hold, and perhaps due do the same, do not have any willingness to exercise direct government political (McCann & Acs, 2011). Just enough lobbyists to pressure on certain governments and achieve their goals.

Capitalism since its origin has been characterized by a relationship ambitious among states and private actors from the financial world or commercial or industrial. States establishing order, conquering new territories or ensuring infrastructure development or formation of labor, have had a central role in the expansion of the active economic activity which were a condition of their power (Sethi, 2009). At the same while private players have always sought to exploit the next protection of the States, free of tax or social obligations these established on them. Companies have always been opportunistic while claiming benefits and lower taxes, higher tariff barriers for their products and free access to other ...