The Influence Of Economic Globalization

Topics: Globalization, Economy, Multinational corporation Pages: 14 (2199 words) Published: December 3, 2014
Gymnasium Georgianum Schuljahr: 2013/14 Vreden Jahrgangstufe:11.2

Facharbeit
im Grundkurs „Erdkunde Bilingual“

The influence of economic globalization on the development of transnational corporations analyzed by the example of Apple Inc.

Verfasser: Jan Philip Petershagen
Betreuender Lehrer: Herr Berger
Abgabetermin: 21.03.14

Table of Contents2
1. Introduction3
2. Definition of Economic Globalization4
2.1 History of globalization5
2.2 Impact on and opportunities for the economy6
3. The Apple Inc.7
3.1 History7
3.2 Current Products8
3.3 Outsourcing and global distribution9
4. Conclusion10
5. Bibliography13
6. Eigenständigkeitserklärung 14

1.Introduction

The world has become a global village in the past 200 years where everybody and everything is statically connected. An individual is able to contact people on every spot in the world within seconds as well as countries are merging together to form a powerful unit that can resist against major forces in the west and east of the world. This process is called globalization.

However, the process of globalization does not only influence the societies and the politics, it of course also plays a major role in the development of the economy. Medium-sized business have turned into large-scale multinational companies that evolve, produce, and distribute in various countries in the world. Anyway this change of the economy has not only positive effects, it also has some negative aspects that are important to name and realize.

I, myself, am an individual that has grown up in the times of globalization and was strongly affected by the benefits as well as the drawbacks of globalization. In order to further investigate the process of globalization I decided to firstly describe and define the term economic globalization, secondly try to apply this model on the multinational technologist corporation Apple Inc. and then finally evaluate the process of globalization.2.Definition of Economic globalization

Economic globalization is a very manifold term and many economists have tried to find a global definition for the term globalization, but they were not able to agree on one final definition. However, the famous economist Jagdish Bhagwati defines economic globalization in his world-wide appreciated book “The defense of globalization“ as “the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.“1

This definition fits nearest to my interpretation of the globalization process because it first of all gives a general impression of the term globalization and second of all names some reasons that led to the existence of this process. Furthermore this globalization process leads to a growing number of transnational corporations developing, producing, and distributing in a big number of developed countries. This mechanism can be described by the global supply-and value chain, which states according to the OECD that the different stages of the production process are located across different countries due to the attempt of the companies to find the optimal location factors for each step in the production chain of a specific product or service.2

2.1 THE HISTORY OF GLOBALIZATION

According to the World Bank the globalization process in the past 150 years can best be described by three main steps3. The first step took place in the years from the 1870s to 1914 and is characterized by a reduction in trade barriers and an improvement of general transportation technologies. This first step is in close conjunction with the industrialisation in the United States which established a nationwide railway system along with an...

Bibliography: Bhagwati, J. (2004). In Defense of Globalization
2http://www.oecd.org/sti/ind/global-value-chains.htm
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