With the age of globalization, communication between states to states is becoming more and more frequent, not only among political cooperation, but also through the economic commitments. The sign of nowadays new economic development model of globalization is undoubtedly the transnational corporation. You may ask the question of how to define transnational corporation, but the answer is very simple: Look at the brand you are wearing! NIKE, ADDIDAS, CUGGI, LV, SAMSUNG, APPLE, TOYOTA, BENZ….. As more as you can tell, they are most likely a transnational corporation. By a very simple definition, transnational corporation means any corporation that is registered or operates in more than one country at a time.
In the past days, people always talked about the overseas market which the developed, industrialised countries overwhelmingly exported their manufactured goods or agricultural products to their colonies or the developing countries that ruined the local economy. However, the situation of explicit exploitation has changed already. And it turns up into a more implicit and invisible violence dominating the world. While you are enjoying the latest edition of IPONE 6 or the newly introduced sportswear of NIKE or the most fashionable bags of CUGGI, have you ever think of how it be made?
An interesting, unbelievable but most probably true answer is “MADE FROM CHINA”. Unquestionably, the design of the bag, the phone, the sportswear is from the company, but the production process is almost 90% exported to the periphery countries like in Asia, Africa. When APPLE is selling an IPHONE more than 600 pounds per one by only making the “chip” and making a huge profit of more than 7 billion dollars, the workers of FOXCONN who made almost more than 70% of an IPHONE earned only less than $17 a day. The similar case also happened in NIKE when he exported all his production process to Vietnam by investing a lot of production factories, the workers there who produced the “real”, “tangible” products of NIKE shoes, NIKE clothes and NIKE pants earned only less than$20 a day. What these inconvenient facts teach us a lesson is that not only focusing on the good side of the well- presented globalization of transnational corporation investment, but also the bad side of how these transnational corporations affects us.
Everyday life would only tell you that globalization is a great thing of improving the economy of your country. And, everyday life would only tell you that globalization is the only way to help your country out of poverty and gain wealth. But, everyday life would not tell you how globalization is undermining, deteriorating and most horribly exploiting the society and the people. Many people love to say you should not blame globalization and transnational corporations, but to praise them because they bring about huge economic growth to our land. However, let us think deeply from nowadays onward, are they really benefit on us? The wealth they brought here is only grabbed by the small amount of businessmen in return we paid out our labour force, our land and our dignity.
Han Chun Kit
Pun Ngai, Jenny Chan and Mark Selden. Dying for an iPhone: The Struggle of China’s Hi-Tech Workers. Lanham, MD: Rowman & Littlefield.
Peter Burnham (2010) ‘Class, Capital and Crisis: A Return to Fundamentals’ Political Studies Review, Vol. 8, pp. 27-39.
Apple Report. Retrieved from, http://www.apple.com/pr/library/2014/10/20Apple-Reports-Fourth-Quarter-Results.html
Economix Editors. February 24th 2012. The iEconomy: How Much Do Foxconn Workers Made? Retrieved from, http://economix.blogs.nytimes.com/2012/02/24/the-ieconomy-how-much-do-foxconn-workers-make/?_r=0
West’s Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. Retrieved from, http://legal-dictionary.thefreedictionary.com/Transnational+Corporation