Lesson 3 and 4 TCW

• Global corporations


  Also referred to as multi-national corporations (MNC) or transnational corporations (TNC). A MNC or TNC is a corporation that operates in two or more countries to leverage the global environment to approach varying markets in the generation.
• International companies


  • Have no foreign investments and make this product or service only in their home country
• Multinational companies


  • Invest directly in foreign assets
• Global companies


  • Have investments in dozens of countries but maintain a strong headquarter in one country
• Transnational companies


  • Invest directly in dozens of countries and experience cost reduction
• Investment based globalization


  The global reach of a vertically integrated TNC dates back from the 19th century in primary products such as oil, mining, agriculture and automobiles in the 20th century
• Digital based globalization


  In the mid 1990s, the information revolution and a growing acceptance of the Internet began to create an explosion in connectivity due to open and almost cost free exchange of a widening universe of rich information
• Trade based globalization


  A type of economic globalization and a measure of economic integration. It loosely represents the proportion of all production that crosses the boundary of a country focusing on the dependence upon external trade
• Fordism


  The eponymous manufacturing system design to spew out standardized, low-cost goods and afford its workers decent enough wages to buy them
• Fordism principles


  • Standardization of products
  • Employment of assembly lines, which uses special purpose equipments to allow unskilled workers
  • Workers are paid a higher living wage so that they can afford to purchase the products they make
• Buyer driven commodity chains

  Refers to those industries in which large retailers, marketers and manufacturers export goods in different countries across the world. Example, Walmart
• Producer driven commodity chains

  This is where a specific product is manufactured, formed and controlled
• BRICS economy


  An economic alliance and partnership between Brazil, Russia, India, China and South Africa
• The name BRICS was coined by Jim O'Neill of Goldman Sachs in 2002. Jim believes that the alliance can be strong enough that in 2030, China can be more advanced than USA
• BRICS continue to emerge and develop with their partnership, some countries like India continue to suffer the oppressive caste system which socially immobilizes them
• QR management


  A concept created to increase consumer satisfaction and survive increasing competition from new competitors. It intends to shorten the lead time from receiving an order to delivery of the products and increase cash flow
• State owned companies


  Government owned corporations that conduct both commercial and non commercial activity. Examples: Land Bank of the Philippines, Lung Center of the Philippines, Jaen Water District
• General Agreement on Trade in Services (GATS)


  To further liberalize international trade, developed countries have pursued new neighbours. A published report from various countries regarding the trade in services negotiating stances revealed wide differences in offers to revise market access for sectors including delivery services, ecommerce, energy services, finance, telecommunications, air maritime and road transport services
• Corporate social responsibility (CSR)

  A self regulating business model that helps a company be socially accountable-to itself, its stakeholders and the public
• Starbucks has achieved CSR milestones such as reaching 99% ethically sourced coffee, creating global networks for farmers, pioneering green buildings through its stores, contributing millions of hours of community service and creating a ground breaking college program for employees
• European Union (EU)


  The idea of creating the EU was finalized after the World War II. EU aims to stop any wars to cultivate between its boundaries like what happened in the former war. The six founding countries are Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The abundance of economic growth started in the 1960s. With the agreement of trade between their goods, they soon experience a surplus agricultural produce. In the recent decade (2000-present) the EU membership continues to expand. This expansion was a challenge for the organization but with each other's help, they contribute a lot to the fight of poverty, environmental problems, peace and etc. The citizens inside membership also benefited for they can live in any country inside the organization as a European citizen
• Economic interdependence


  Globalization is commonly equated with the rising momentum of global free market capitalism in the final decades of the 20th century. Both champions and critics of the so-called Washington Consensus and its neo-liberal emphasis on deregulation, privatization and free trade see globalization as imposing a forced choice upon states; either conform to free-market principles or run the risk of being left behind
• United Nations (UN)


  The name "United Nations", was coined by the United States President Franklin D. Roosevelt in the Declaration by United Nations of 1 January 1942, during Second World War. It is currently made up of 193 member states. The UN was formed to fight against injustices, inequalities or disadvantages of any country. It aims to be united as one with the countries all over the world to fight and maintain peace and prosperity
• Transnational activism


  Transnational activism is being held as a possibility for change. Transnational activism is already becoming a fast and trending phenomenon of the result of globalization
• Communications network: media and states

  According to Morris (2001) "the world's digital citizens are fortunate to grow with the Internet across the world and to have the capability to make the most of cyberspace as they now face the inevitable to seek information and evaluating for themselves which sources are credible and compiling enough to follow"