Blog 4. What is the relation between economics and globalization?

1. What is the main issue about the realtionship between economy and globalization?
That is TNC. TNC means the transnational corporation- is the main actor performing in the world economy.
 Coporations which have located outside their home country and have the power
to control other countries as economy and to manufacture productinon outside
their home country have made business empires at a world scale. the companines like thoesare increasing and growing in the world. And TNC activity is measured by using statistics on FDI.
 Then wht and how firms are transnationalizaed? First, the reasons wy the firms extend their operations are market-oriented investment and asset-oriendted investment. The firms want to create more profits from other countires beyond their home country because they even can't get investment from their home country anymore. And  Second, the way the firms develop transnational activities is greenfield and cooperate with other firms.
 The TNCs are the most important aspect in global economy market. They have so powerful authority to extend their business in their ways.

2. I think that we should consider TNCs with a critical view. TNCs have brought the development
of global economy but, in fact not global. It just is the development which is selfish and
partial.

3. I guess that the most influential part of globalization is economy. I hope that we
know more about how globalization have affected global economy and our daily lives.

The globalization of economy of South Korea

Relationship between economics and globalization

- The globalization of economy of South Korea

     The economy of Korea Rep. started to globalize itself throughout the 1960s, because of the lack of technology and the insufficiency of resources. Korea had to fulfill its resources through importation, but the money for the importation was not enough, thus, the structure of the economy of Korea automatically  designed to ‘earning dollar-based exportation’. The result of this economy program was not that bad and Korea right now is one of the most important economical nations. The ‘globalization-based economy’ brought the success to Korea. Countries like before South Korea - countries with lack of resources - tries to follow what it had walked through and to those countries, no words are necessary in the point of the importance of the globalization of economy. However, this kind of economic type, high dependency economy, makes huge problem when the world economy trembles. Almost every economic necessities will get harmed throughout the entire country, such as oil, steel, gas and more. 

     Consequently, the globalization of economy is not an option because of the lack of resources, the limitation of capital and so on. Economics and globalization is an one-set term, not a separate concept.

What is the relation between economics and globalization?

1. Economy is also moving beyond geographical boundaries of nations. There are many multinational corporations like Mcdonalds, Coca cola everywhere in the world. Also, economic interdependence between countries has increased. We can find that the volume of trade has increased. (Except the World War) However, It is not true that these economic flow always doesn't be hindered from something. Some cacophonies of economic globalization can be existing. So TNC is very important part in economic globalization. Briefly, It is the transnational corporation beyond national boundaries.
 Capitalism survived among many social ideologies. And the invisible hand that can move money of the world is moving our economy. But are it just right things these corporation of capitalism? The documentary that we watched in our class (The Corporation, 2003) show us the scene of capitalism. The brands wrapped by commercial are familiar with us. And They have dominated us little by little. Can we blame them because they caused economic polarization and took resources indiscriminately? I think that we should never forget that we are also the part of capitalism.
 In conclusion, I think that economic globalization is a viewpoint of macroscopic economy. However, it has many problems nowadays. We should think about the hidden side of economic globalization.
2. At the end of the class, I have many doubtful points about the conception of globalization that we have just thought positive. I think we should keep approaching these problems with interests.
3. I wonder how can we change this enormous world. It won't be easy. But we can't disregard the refugees who are still starving in Africa or the employees who have a slender income in the Third World countries any more.

Korea Herald) [Editorial] Move to join TPP

[Editorial] Move to join TPP

Korea needs to embrace regional bloc

Korea, ending a protracted deliberation process, is near to joining negotiations on the Trans-Pacific Partnership, a multilateral agreement to liberalize trade in the Asia-Pacific. It said last Friday it would make a final decision after talks with the United States, Japan, Canada, Australia and eight other negotiating partners.

The forthcoming consultations are little more than a formality, given that Korea, the eighth-largest trader in the world, has long been urged by the United States to join the negotiations on lowering trade barriers among 12 nations that make up 38 percent of the world’s economy. Korea, which already has free trade agreements with the United States, the European Union and other economies, has had to weigh potential gains from the TPP against potential losses.

Korea has detractors both domestically and abroad. Farmers are at the forefront of the domestic groups that are against the proposal to promote regional economic integration through the TPP. The opponents are worried about the wider opening of the domestic agricultural market and the lowering of protective barriers, both tariff and non-tariff.

Before making a final decision, Korea has had to take caution, as the TPP is perceived by China to be a U.S.-led strategy to encircle the second-largest economy in the world. Korea has needed to consider the potential impact its membership of the TPP would have on its relations with China, its largest trading partner. Moreover, it is in the process of negotiating a free trade agreement with China.

But it is hard for Korea to ignore the potential benefits. According to one study, the lowering of tariff barriers alone will raise its gross domestic product by 2.5 percent or higher in real terms by 2025. Such huge benefits are reportedly attractive to China as well.

Korea, a nation poor in natural resources, has no choice other than to embrace the new trade order that is emerging from the TPP. Korea needs to expand its trade of goods and services and encourage foreign direct investment by joining what is shaping up to be the most powerful trade bloc in the world, if it wishes to pull itself out of the low-growth mode. While pursuing membership to the TPP, however, it will have to make efforts to resolve conflicts with its detractors.