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    22 views18 pages

    Orca Share Media1535539139730

    Uploaded by

    Justin Raz
    lol

    Copyright:

    © All Rights Reserved
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    of 18
    The Rise of the Global Corporation ‘THE MISTORIC RISE OF THE GLOBAL ‘CORPORATION ~ THREE PERIODS As indicated throughout hie tex, global cor Poratlocs are isepuabie fom the tore general pheaomence of globaieation tact Te folows that how one ietieslubaie ‘won serves to “Tec globl comuretons, both io the complex ‘interactive piers defined by globalization and wilin given store! periods. This chapter states the blobs corpomtion in hee boa historia “The sprtach othe sy of ghdsltion ovrsines termed “aston globalization ‘neat the phenomena iin ety peters of tae ad exchange (Beetle, 200, ile and Thompson, 2006, Moore ani Lewis, 2000) nets barca prods ath cies nd counties exeaded thet teach: beyond their on border, his view Bods, form of lbeliatin, was iniated whic then fol ‘owed complex params of interactive sage. ‘ments eranzed tough ade and Gel Inueoee by the entgent an sutsequeny Deane Neubauer ominat ehnolgis, especialy i bpp ag Sn nngaon (Hate) 1980). Ae Moot and Cowie contend, te ete epeting wi, ths eavirnment were fuconaly org ‘sanonaly oto very alleen on one, Pry nganzations. beng posted of "aad oes, foreign banch plats soporte hierarchy, enrtentonalbosines lm ad vena bit of foreign dee invest nd value-aded actnty” Moor and Lewis, 2000: 31-2), The vast betecogenety ofthis long period, te the det amevedent athe conten ray soba corporation within the yas 6 wo eenmtemps long tain spa Boe te ead nr the od ar system eneged in ways that slowed vee Yh ad social exgnizton comin tnt vastly inctesed weld cpt andthe weal of main sates, Coupled with an extn ‘ay nie ia global population hat steoded the indstial revofton, the soctees that ose would avert nos" way fo oganve ‘he world seit though colonise sa fmpetialsm that varty atesusied thie interactions beoween peoples, sites and regions such that a ley differentiated era of global ineraction can be std fo exist (Garvey, 1950), Many ofthe charctsnes ofthe global consort tht we examine let in his chapter date fom this period (or example, puters of equity owner, ‘omporats owersbip snd management > subsidiaries, the relatonship of “central” ‘rgaiationa functions a euppy and dis ‘bution cain, ee) as atbites of cop. ‘ate situes in the moat provperos ad lbally-engaged saons (args through ‘vlna an imperialist relationships) AAs the world emerged fit the vast estutions of World War Il” economic ‘ecovery and expansion were led ove ‘weimingly by Amaiinconsrations whic for a pero from the ead af the war uti the renty of Japanese and European cer ortons ono te plot scene cently Sood for what by thea had’ come tbe ‘viewed as multinational corporations (SINC) (amet and Muelle, 1974) This period tom (he end of Word War I othe present can be viewed, thefore, as third and dita eno in the tansoemation of the glob ‘emoration. As the next parts of this chapter ‘etl, the tanstormators ofthe lobal cor portion eccung within this tind pevod have been farreaching and distinctive, reflecting changes taka place win the bronder structural dimemone of gbitien to ise en a the sant sgifcaly contibuig to toe cotnuing changes HOW DO GLOBAL CORPORATIONS FUNCTION? WHAT CONSTITUTES A ‘GLOBAL CORPORATION? The contemporary glotal corporation is sinullaeously and eommonly refered to citer wa MINC, a trensatinal corporation (TNC), nena company 0 glabal company. While mich ofthe raindet of this chapter wil serve clay sume of ‘hese intnctions, those offered by Iwan 12012) are practealy wif, + Irons copais ingore apa peal wna reser te the hae coun, + Matinatond compas have insemect in ihe cote dao hve cordate prod orgs nea cou They are fees on aging er ees ese, ‘each nite mai Sen In many cus Thy ypc mae ter produ ard sevice tach mcs laa moet + Tanstaonat companies ae mer compen twpaztons ach nave Inet neg erin havea cnt cose fay et fhe decson mang esa nd Setpent Rao) ana morn poet x nds ‘erage rane ‘More formally the TNC has ben defined by the United Nations Cenreon Transitional CComporations (UNCTC) ae an “iterpise that engages in acvis which ad vse (vamufictoring, extraction, services, thar sting, ete) in mere than one country (ONCTe, 1991) This bape wil employ ‘he trm global eozporation to refer oil these types, seking within specie contexts to be clear about which usage most apes. ‘As many ofthe etatons enployed below Indicate, however, thse distinctions ave tea not employed within the eat ‘An understnaing of how globl corpora tions operate within contemporary gobi tion requires bie ecouting of some of the major change tha have taken place over the almest 70 year since the end of Word ‘War Tl AS indicated above, US corporations operating interaionally” bad enormous vantages nthe nine powc-var peri 4 they vitally alone the wold — erged fom the war with ter prosctv, ‘rpatzaion and ienutona capes Inte Wht would fate shape as he bes ting of contemporary globalization, however ats fom the economic resvery of capil structures in Japan apd Europe an the ee {nto global marke oftheir national co onions. By 1974, Barnet and Muelle pati-breaking volume could both define the NINC as 3 major economic global ator and begin an effective deverition of how this 260 HE SAGE HANDBOOK OF GLOBALZATN Proauceraien Commesty Chains ones are Fin suites na Suborancoe Et Hem HS | ‘Byerervan Conmesly Chane ‘OVERSEAS igure 174. The organization of producendeven and consumerdivn commodity chalns Soe ci 2091:61) parcular corerate form was coming to Aominate various aspects of global rode tion and exchmge (Barnet 20d Meller, hoacly work Socuments various “waves” ff glob compere development though swoeld stay nplice and continue to develop froughovt the 19708 aad 19808 ~ a period st stands chronologically jst prior 0 {tree fundamedal innova at have sstaaially changed the character ofthe {lob corporation the advent and impact of digtabzaton and ineentanenue zl0sl ‘ommuniation te strata tanaforma ‘ion of glob commerce Hom preduce- ‘riven commodiy eins to bayer-diven; sd the ineeasing role performed though the globl system by Financial element sd the emergunce ofthe gobal inact frm The postwar period can be dened in 8 based globalization (1950-70); trade based slbaliztion (1970-95); digital globlin- tion (1995 onwards). Within this analysis the nature of the global comperation changes acordingly, being deiven in each fase by its evolving purposes and by ite fxtended reach and abies (Gif, 2001 616-18). Another method of projecting this growth sto examine the sourees nd levels of Foreign Diet Invertment (FD) ‘most of which was of easporate ogi. Ar Hedley indicates, im 1900 only European ‘ThE ns oF te GLOBAL comPona corporations were major investors, t0 be Jsined by: some American tims it the 900s. Citing UN data he dates 1960 as the principe! turning point fr FDI asthe imijor driver of extended global corporste evelopment. In each subsequent decade until the tar of the centiy, FDI would triple (Hedy, 1939), ‘Throughout these periods economist, cer schol nd goverment aciom at both the national an wansational level fended to “fam the proesive gent o he gota, orate srcte (agai, refer to lest indisccimiawely as ether MNCS on TNC4) through forts deine, measure and ates the extent and censaguences of FD, dened inialy and primary asthe ety of pivte pital fom a sec extemal to & county into a resivng county. Usual refered to {in toms of ‘ota ad “n-ward Daw, supplies of FDI were viewed asthe rajoe clement of glotalecouomic development, nd dung variots policy periods ators Ul” forthe development of waat was then viewed a6 the “thr world even iim realy, the vast majoiy of FDI ia the 1990 we between counties ofthe ‘developed! wld ‘rimanly Nort America, Europe and Tapan Since 1964 the Usted Nations Conferace ‘2 Trade and Development (UNCTAD) tas focused onthe varour roles that FD pay a the development proes ad has maintain sn extensive poly Iary of global FDI saith a8 well ab the dense ste of ‘egulation tat mes global te comport txoss-border engagements. (Kickocos 2003). Periods of itege FDL changed ths flobal corporate landscape: During the Detod 1985-90 FDI grew ean average rate 930 per cena year. One rel unsure ingly, was the charging landscape of corpo ‘ate uit and her elauonhip teach other DeAnae Julius indsates thatthe expansion of FDI, infercompoate alliances, an int fiom nde daring he pevod reached lve) at which “a qualinively diferent at a linkages’ was creted among advanced ‘economies lies, 1990, was estate ‘hat some 20,000 rew corporate alliances were formed just in the peviod 1996-# (ip 2000: £70, The investment bese period was domi his, wv in tn tended fo be diated by fim characterised hy te amon ‘once capa reese omar cle or ‘ital-inensive manactaring or exacting indus. The omnization athena global fms during this period wos poe fay infaenced bythe anstnmaton wth ‘ational economies of he older manta ing companies wrought by wha wan sie as the progressive ‘Se-inastaliton, of these economies though ‘wileseae of shoring of labour applications and ie cate con (See, for exile, Bluestone and Harrison, 1984) Ths prgtesve shi inthe siting of manucte warms the dom ant manufactaing fs there ole eveloped. compasicr io. snare Aly extended and earned oipaieational fara that moved many sich fms oom tl somcious understanding of themelver ‘sata is operating item ite ‘more athena global fms tt ied extensive corporat inlegion of thet ati tis throu th word ‘Many ‘comporate strictures, especially ‘hone inthe United Stites, operating wii the fame ofthe roducedeven eaten sain a ex onpanized by what cme to be "ecognizel as "fords mamageinent pine ples. US “ems in pascular ad sovght transport hee models sbrved wo teittes ational manufueturing holdings Tac ‘mecgenct of Japan st 4 major produces ation, espcialy of automobiles and con sumer’ eletronics from the 1970s on bought oto the scene new mess of fier tiv produzion fase expecially on qua ity and regimes of Nexble production 2 ‘move that was echoed within Eoropean fiss rejoining the gloat commodity Chang. These setvies were experienced by US fins ar unwelcome challenges © their previously visually unchallenged Positions on peduct-derigh, production fffleincy, and quality ~ and util oa a7 THE Sant HANDBOOK OF GLOBALZATON th abil of hese corporate structures (0 Inaintain’ their accantomed returns on investment. The result was © progressive Mfeinveting” of the American business model, especialy the industial model — allenge tht would dominate the euicula ‘of US busines shook fo over decades (si, 2005) and whichis lo continously ‘SSocited wih the global valve aft for ‘anuftctiring cpt Grance and human Capital progenively networking societies (Cte, 2009, ‘Gai bas aigued perssively that “bow lott eorprasons wok sagt eerie by wer they aresinatedin produce ven tr nye even commodity cin Figue 171 tiwn fom bis wort ob US fis sggess ‘Sd tate me bajerdeiven they ar, theo onde ext within tet actors a the gear ether Uni intedepenence om ‘er aes or tir perv fo etabsh ‘esis (oy wlever ownership cr contact seas) of soppy. nc, The degree 1 whic these generalizations vere apt has eed with each extension ‘of dal reach Brouphout the wold. Com ody eins now neal to be eancepuaized {exiting within external complex Tafionation ster in whieh comm ype to sow exponeslly bl corpo Fe sirseres and operations canbe viewed ‘within te ever-changing dig enviroment {famed by the constant raed o develop abd Sap Equilly, one ean eavson corporate testy a bong ppeled ato extensive omuninsten ecvienments a which the

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