R4) What is the relation between economics and globalization?
Summary In the globalized market, the TNC is the center of the global economy. We think the TNC is living in a world that crosses borders and is dominated by the TNC. This Reading 4 provides a more detailed description of the TNC's character and significance in the process of economic globalization. The beginning of the company, which expanded its sphere of activity beyond home country, was just the level of early international development. This is a further development since charter trading companies such as the East India Company and Hudson Bay emerged in Europe after the 15th century. This led to the emergence of colonies and merchant capitalists, creating a corporate empire. However, the main purpose of these companies was trade and exchange, and the start of the TNC was the time of World War I. Increasingly, TNCs are growing exponentially, and the definition of TNCs at this time is 'an entity with the power to coordinate and control operations in one or more countries...