Nacaytuna,Shiela Mae

02 Worksheet 2

Instructions
INDIVIDUAL. Summarize and explain the following heading sections after reading 02
Readings 3-4:

1. The historic rise of the global corporation

2. How do global corporations’ function?
3. What constitutes a global corporation?
4. Emerging market global corporations
5. The normative case regarding global corporations
6. From triumph to crisis
7. Multilateralism in disarray
8. The crisis of the neoliberal order
9. The corporation under question
10. Cracks in military hegemony
11. The degeneration of Liberal Democracy
12. The rise of The Movement
13. Liberal democracy loses
14. Porto Alegre and the future

Answers:

1. The Historic Rise of the Global Corporation – Three Periods

It follows that how one identifies globalization serves to locate global corporations, both
in the complex interactive pattern defined by globalization and within given historical
periods.

2. A global company is generally referred to as a multinational corporation (MNC). An

MNC is a company that operates in two or more countries, leveraging the global
environment to approach varying markets in attaining revenue generation. These
international operations are pursued as a result of the strategic potential provided by
technological developments, making new markets a more convenient and profitable
pursuit both in sourcing production and pursuing growth. International operations are
therefore a direct result of either achieving higher levels of revenue or a lower cost
structure within the operations or value- chain. MNC operations often attain economies
of scale, through mass producing in external markets at substantially cheaper costs, or
economies of scope,
 through horizontal expansion into new geographic markets. If successful, these both
result in positive effects on the income statement either larger revenues or stronger
margins, but contain the innate risk in developing these new opportunities.

3. A global company is generally referred to as a multinational corporation (MNC). An

MNC is a company that operates in two or more countries, leveraging the global
environment to approach varying markets in attaining revenue generation. A
multinational corporation operation often attains economies of scale, through mass
producing in external markets at substantially cheaper costs, or economies of scope,
through horizontal expansion into new geographic market.

4. An emerging market economy is the economy of a developing nation that is becoming

more engaged with global markets as it grows. Critically, an emerging market economy
is transitioning from a low income, less developed, often pre- industrial economy towards
a modern, industrial economy with a higher standard of living. An emerging market or an
emerging country or an emerging economy is a market that has some characteristics of a
developed market, but does not fully meet its standards. The economies of China and
India are considered to be the largest emerging markets.

5. There has been tremendous growth in the sales of certified fair-trade products since the
introduction of the first of these goods in the Netherlands in 1988. Many would argue
that this rapid growth has been due in large part to the increasing involvement of
corporations. Still, participation by corporations in fair trade has not been welcomed by
all. The basic point of contention is that, while corporate participation has the potential to
rapidly extend the market for fair trade goods, it threatens key aspects of what many see
as the original vision of fair trade – most notably a primary concern for the plight of
small producers and the goal of developing an alternative approach to trade and
development – and may even be undermining its long-term survival. The primary
purpose of this article is to explore the normative issues involved in corporate
participation in fair trade. In order to do that, however, it first provides a positive analysis
of how corporations are actually involved in fair trade. In order to achieve both of these
ends, the article draws upon global value chain analysis.
6. The surprising strength and endurance of neoliberal capitalist reforms remain the great
unexplained mystery of post-Communist transition. Liberal economic reforms survived
leftist returns to power, persisted across multiple governments, took place in successive
reform pushes and, in their extent and endurance, defied scholars’ expectations.
Newfound political freedoms were seldom used to reverse capitalist reforms and cultural
norms did not force governments to abandon them. Instead, neoliberal reforms prevailed
in these nascent polities for nearly two decades. This book presentation will argue that
post-Communist transition was driven by a process of "competitive signaling," motivated
by these countries’ desperate need for capital, their sudden opening up to the global
economy, and the ideological dominance of neoliberal ideas. These factors set off a
competition between post-Communist countries to signal their attractiveness to investors
by quickly adopting attention-grabbing neoliberal capitalist reforms. After the global
financial crisis hit and capital flows to the region suddenly stopped, governments began
to retreat from the neoliberal agenda, with numerous reversals of the most avant-garde
programs like flat taxes and pension privatization. Moreover, economic nationalism and
populism began to take hold, and support for alternative models of economic
development by opposition parties and mass groups began to gain traction in post-
Communist European polities.

7. Multilateralism in disarray process of organizing relations between groups of three

or more states. Beyond that basic quantitative aspect, multilateralism is generally
considered to comprise certain qualitative elements or principles that shape the character
of the arrangement or institution. Multilateralism, is also the form of membership in
international institutions, serves to bind powerful nations, discourage unilateralism, and
gives small powers a voice and influence that they could not otherwise exercise. For a
small power to influence a great power, the Lilliputian strategy of small countries
banding together to collectively bind a larger one can be effective. Similarly,
multilateralism may allow one great power to influence another great power. For a great
power to seek control through bilateral ties could be costly; it may require bargaining and
compromise with the other great power.

8. The crisis of the neoliberal order or neoliberalism is contemporarily used to refer to

market-oriented reform policies such as "eliminating price controls, deregulating capital
markets, lowering trade barriers" and reducing state influence in the economy, especially
through privatization and austerity. The crisis
 that began with the subprime loan crash of August 2007 in the United States will remain
a distinctive milestone in the history of capitalism. From its onset, the financial turmoil
took unexpected proportions. The shock gradually unsettled the fragile financial structure
that had been built during the previous decades and destabilized the real economy. By
September 2008, it became evident that capitalism was entering into a deep and lasting
crisis, a Great Contraction, reminiscent of the Great Depression.

9. Those advancing the globalization thesis do not provide a coherent concept of the world
economy in which supranational forces and agents are decisive. Pointing to evidence of
the enhanced internationalization of economic relationships since the 1970s is not in
itself proof of the emergence of a distinctly global economic structure. The international
economy has been subject to major structural changes in the last century, and there have
been earlier periods of internationalization of trade, capital flows and the monetary
system, especially from 1870 to 1914. There are very few truly global transnational
corporations (TNCs). Most so-called TNCs are really only multinational corporations
that continue to operate from distinct national bases. The prospects for regulation by
international cooperation, the formation of trading blocs, and the development of new
national strategies that take account of internationalization are by no means exhausted.

10. Positing the dawning of a post-American World, declinists have taken little account of
the USA’s surging interventionist tendencies and the new political economy of military
power arising from the relentless pursuit of global militarism. The USA has long
exercised its competitive advantage in military power to enhance its diplomatic clout, as
well as to advantageously reposition its national industrial and financial base. The pace of
such martial efforts has accelerated as US policy makers, employing a ‘deep engagement’
grand strategy, strive for paradigm maintenance and geopolitical expansion within the
periphery. Interventions have been facilitated through new processes and procedures,
carefully constructed to create a sufficient degree of autonomy to permit the US state to
‘project power’ without broad societal resistance. US policy is path- dependent, locked
into a reflexive pattern, unable and unwilling to learn from its long string of blunders and
delusionary adventures. But US policy makers do not suffer a loss of will-to-power, as
neo-conservatives allege.
11. Liberal democracy, also referred to as Western democracy, is a political ideology and a
form of government in which representative democracy operates under the principles of
liberalism. It is characterized by elections between multiple distinct political parties, a
separation of powers into different branches of government, the rule of law in everyday
life as part of an open society, a market economy with private property, and the equal
protection of human rights, civil rights, civil liberties and political freedoms for all
people. Liberal democracies usually have universal suffrage, granting all adult citizens
the right to vote regardless of ethnicity, sex, property ownership, race, age, sexuality,
gender, income, social status, or religion. However, historically some countries regarded
as liberal democracies have had a more limited franchise. Even today, some countries
considered to be liberal democracies do not have truly universal suffrage as those in
the United Kingdom serving long prison sentences are unable to vote, a policy which has
been ruled a human rights violation by the European Court of Human Rights
Governmental authority is legitimately exercised only in accordance with written,
publicly disclosed laws adopted and enforced in accordance with established procedure.
Many democracies use federalism, also known as vertical separation of powers, in order
to prevent abuse and increase public input by dividing governing powers between
municipal, provincial and national governments.

12. You never know what your idea can trigger. I am leading currently a movement called
The Rise Movement. This movement is all about rising up into your fullest expression.
When we rise in our self-love, we impact the whole planet. When we rise up in our voice
and our truth, we give others permission to do the same.

13. Liberal democracy is a form of government. It is a representative democracy in which the

ability of the elected representatives to exercise decision-making power is subject to the
rule of law, and usually moderated by a constitution that emphasizes the protection of the
rights and freedoms of individuals, and which places constraints on the leaders and on the
extent to which the will of the majority can be exercised against the rights of minorities
The rights and freedoms protected by the constitutions of liberal democracies are varied,
but they usually include most of the following: rights to due process, privacy, property
and equality before the law, and freedoms of speech, assembly and religion. In liberal
democracies these rights (also known as "liberal rights") may sometimes be
constitutionally guaranteed, or are otherwise created by statutory law or case
 law, which may in turn empower various civil institutions to administer or enforce these
rights.
14. Porto Alegre is well known for its innovative social policies but less so for the
environmental policies that are this paper’s focus. The paper begins by describing the
city’s participatory budgeting system and the multiple interconnections it has with a
wide-ranging environmental policy. Porto Alegre has the highest standard of living and
the highest life expectancy of any Brazilian metropolitan Centre. Virtually all its people
have water piped to their homes and most have good-quality sanitation and drainage. The
garbage collection system reaches virtually all households and has included a separate
collection of recyclables since 1990; other program enforced industrial pollution control
including special provision in garages and petrol stations, keep down polluting motor
vehicle emissions and ensure the re-utilization of organic wastes from parks and
restaurants. The city has 14 square meters of green space per person and a million trees
along its streets. This paper also describes the education and environmental information
program that underpins these policies, including changes to school curricula and the
Environmental Atlas of Porto Alegre that provides the base information for
environmental policy, environmental discussion and environmental education. The paper
ends by discussing how sustainable development is impossible without good urban
environmental management and how this, in turn, has to be built on democracy and
participation.