Archaic globalization Archaic globalization conventionally refers to a phase in the history of globalization including globalizing events and developments from the time of the earliest civilizations until roughly the s. This term is used to describe the relationships between communities and states and how they were created by the geographical spread of ideas and social norms at both local and regional levels. The first is the idea of Eastern Origins, which shows how Western states have adapted and implemented learned principles from the East.
Corpwatch Transnational corporations are among the world's biggest economic institutions. The top five car and truck manufacturers are responsible for nearly 60 per cent of worldwide sales of motor vehicles. The five leading oil majors account for over 40 per cent of that industry's global market share.
For the chemicals sector, the comparable percentage is 35 per cent, and for both electronics and steel it is over 50 per cent. Offices of the US food processing firm H. Heinz cover six continents and Cargill, the US's largest grain company, operates in 54 countries.
Britain's leading chemical company ICI has manufacturing operations in 40 nations and sales affiliates in DuPont and Enron are examples of publicly-traded corporations. Or a TNC can be "private," meaning that it does not have shares which are traded publicly; such firms are frequently family-controlled.
Cargill is a private firm which until recently was controlled by two families. A "parent" company, located in the TNC's country of origin, exercises an authoritative, controlling influence over a "subsidiary" in another country either directly if it is private or, if it is public, by owning some or all of the shares parent corporations can exert controlling power even with relatively small share holdings in subsidiaries.
United Carbide India Ltd. Subsidiaries can have a different name than the parent company, and can of course also be located in the same country as the parent.
The style of relationships between parent and subsidiary companies --that is, how control is exercised--differs among TNCs' main home regions. More formal, centralised control has typically been a hallmark of US, and to a lesser extent European, corporations than of Japanese TNCs.
Brief History of TNCs From the Origins to the Second World War The earliest historical origins of transnational corporations can be traced to the major colonising and imperialist ventures from Western Europe, notably England and Holland, which began in the 16th century and proceeded for the next several hundred years.
During this period, firms such as the British East India Trading Company were formed to promote the trading activities or territorial acquisitions of their home countries in the Far East, Africa, and the Americas.
The transnational corporation as it is known today, however, did not really appear until the 19th century, with the advent of industrial capitalism and its consequences: During the 19th and early 20th centuries, the search for resources including minerals, petroleum, and foodstuffs as well as pressure to protect or increase markets drove transnational expansion by companies almost exclusively from the United States and a handful of Western European nations.
Fuelled by numerous mergers and acquisitions, monopolistic and oligopolistic concentration of large transnationals in major sectors such as petrochemicals and food also had its roots in these years. In Japan, this period witnessed the growth of the zaibatsu or "financial clique" including Mitsui and Mitsubishi.
These giant corporations, which worked in alliance with the Japanese state, had oligopolistic control of the country's industrial, financial, and trade sectors. In the s, banks in the US, Europe, and Japan started to invest vast sums of money in industrial stocks, encouraging corporate mergers and furthering capital concentration.
Major technological advances in shipping, transport especially by aircomputerisation, and communications accelerated TNCs' increasing internationalisation of investment and trade, while new advertising capabilities helped TNCs expand market shares. All these trends meant that by the s oligopolistic consolidation and TNCs' role in global commerce was of a far different scale than earlier in the century.
Additionally, TNCs had come to control per cent of world trade outside the centrally planned economies. Inthere were some 7, parent TNCs, while today that number has jumped to 38, Since the early s, these subsidiaries' global sales have surpassed worldwide trade exports as the principal vehicle to deliver goods and services to foreign markets.
The top TNCs also account for about one-third of the combined outward foreign direct investment FDI of their countries of origin. Since the mids, a large rise of TNC-led foreign direct investment has occurred.
There has also been a great increase in TNC investment in the less-industrialized world since the mids; such investment, along with private bank loans, has grown far more dramatically than national development aid or multilateral bank lending.
Burdened by debt, low commodity prices, structural adjustment, and unemployment, governments throughout the less-industrialised world today view TNCs, in the words of the British magazine The Economist, as "the embodiment of modernity and the prospect of wealth: Inless-industrialised countries accounted for between one-third and two-fifths of global FDI inflows -- more than at any time since While intra-company trade in natural resource products has been a feature of TNCs since beforesuch trade in intermediate products and services is mainly a phenomenon of recent decades.
By the s, an estimated one-third of world trade was intra-company in nature, a proportion which has remained steady to the present day. The absolute level and value of intra-company trade has increased considerably since that time, however.
Moreover, 80 per cent of international payments for technology royalties and fees are made on an intra-company basis. There are many benefits TNCs derive from transfer pricing.
By lowering prices in countries where tax rates are high and raising them in countries with a lower tax rate, for example, TNCs can reduce their overall tax burden, thus boosting their overall profits.
Virtually all intra-company relations including advisory services, insurance, and general management can be categorised as transactions and given a price; charges can as well be made for brand names, head office overheads, and research and development.
Through their accounting systems TNCs can transfer these prices among their affiliates, shifting funds around the world to avoid taxation. · The epoch of global capitalism has ushered in a new global system of governance and authority that impacts what happens within nations and communities around the world.
The core institutions of the transnational state are the United Nations, the World Trade Organization, the Group of 20, the World Economic Forum, the International Monetary ashio-midori.com Chapter 1 Globalization and global politics.
STUDY. PLAY. Globalization and global politics - globalization is defined as how an event has greater impact around the world - it has resulted in both a.
greater cooperation - this describes how people all over the world are becoming more connected to each other.
· It allows people in countries around the world to instantly contact each another through email, chat programs and video calls.
This instant communication has revolutionised business and social lives. In addition to the internet, mobile phones, voice mail, and text messaging allow instant contact across states and ashio-midori.com · Some people perceive the ascendancy of global corporations as a positive force, bringing economic growth, jobs, lower prices, and quality products to an expanding share of the world ashio-midori.com /modules/ashio-midori.com · Around the world, millions of people depend on the cultivation of coca, opium poppy and cannabis for basic subsistence.
The Convention introduced strict controls on the cultivation of these plants and banned centuries-old traditional medicinal, cultural and ceremonial ashio-midori.com://ashio-midori.com These transnational networks, sometimes referred to as “global civil society,” connect millions of people around the world based on shared political commitments.
Consequently, some feminist philosophers believe that political “globalization from below” provides women and other vulnerable people with an effective means for resisting the ashio-midori.com