CONTEMPORARY

WORLD GROUP 2
 LIST OF MEMBERS

 Ganal  Delima

 Datu  Demanarig

 Dolorito  Halog

 Crisostomo  Felisilda

 Soliva  Diaz

 Solana
The historic rise of the global corporation
Global Corporation is a large company that
operates in many different countries. Global
corporations in a sense are multinational
corporations having many units operating, in
overseas countries. They operate in two or more
countries and face many challenges in their
quest to capture value in the global market.
How do global corporations
function?
An understanding of how global corporations operate within contemporary globalization
requires a brief recounting of some of the major changes that have taken place over the
almost 70 years since the end of World War II. What would take shape as the beginning of
contemporary globalization, however, dates from the economic recovery of capital
structures in Japan and Europe and the reentry into global markets of their national
corporations. Throughout these periods economists, other scholars and government actors
at both the national and transnational level tended to `frame' the progressive growth of the
global corporate structure (again, referred to almost indiscriminately as either MNCs or
TNCs) through efforts to define, measure and assess the extent and consequences of FDI,
defined initially and primarily as the entry of private capital from a source external to a
country into a receiving country. Periods of intense FDI changed the global corporate
landscape.
What constitutes a
global corporation?
Modern global corporations are also referred
to as multinational corporations (MNCs),
transnational corporations (TNCs),
international companies, or global
corporations. These distinctions offered by
Iwan (2012) are practically useful, even though
much of the rest of this chapter will serve to
clarify some of them.
 What is Emerging Market
Global Corporation?
Global Corporations in Emerging Markets:
China International Marine Containers Group
(China) is the world's largest manufacturer of
shipping containers Cosco Group (China) is one
of the largest shipping companies in the world.
Basic Element (Russia) is a global leader in the
production of alumina. Bharat Forge (India) is
one of the largest forging companies in the
world. BYD Company (China) is the world's
largest manufacturer of nickel-cadmium
batteries.
 The normative case regarding global corporations
The case for global corporations has been inseparable from the broader
discourse of north-south relations and the post-colonial critique of north–
south relations. In the 1960s and early '70s they were viewed as agents of
a system that on balance was resulting in greater global wealth inequality,
income inequality, lack of effective worker protection and environmental
degration. The top 20 per cent controls more than 80 per cent of global
wealth, but only one percentage point of global income is controlled by
those in the bottom quintile.
Multilateralism in disarray
The United States benefited most from the new post-Cold War
global order. Although it was supposedly a mechanism for free
trade, the World Trade Organization’s (WTO) most significant
agreements promoted monopoly for US companies: Trade Related
Intellectual Property Rights Agreement (TRIPs) strengthened the
control that US corporations like Intel, Microsoft, and Monsanto
have over high tech innovation. Multilateralism as the USA sought
to forge a global military alliance against terrorism. Co operation
between the USA and European Union saved the Fourth
Ministerial of the WTO in November 2001 from going of the Third
Ministerial in Seattle, which had collapse in disaaray
From triumph to crisis
A resounding collapse of the official economies of Eastern Europe and
triumphalist talks about the origin of a new market-driven economy that
left borders out-dated and dependent on the advances of information
technology started during the last decade of the twentieth century.
Transitional corporations were considered as the key agents of the New
global economy as they were depicted as the incarnation of market
freedom due to their superior ability of being efficient. The World Trade
Organization was later born halfway into the decade. It is claimed that
this would provide a stable scaffolding for a new global economy. The
organization would fill in the role as the catalyst for an economic process
that aims to bring about the best results. It is also considered as one of
the pillars of a holy trinity, the other two being the International
Monetary Fund and the World Bank.
 The corporation under question
By the end of the last decade of the twentieth century, in short, the
triumphalism that marked the beginning of the decade had evaporated and
given way to a deep crisis of legitimacy of the multilateral order. The most
egregious being the predatory practices of Microsoft, the environmental
depredations of Shell, the irresponsibility of Monsanto and Novartis in
promoting genetically modified organisms, Nike’s systematic exploitation of
dirt-cheap labour, and Mitsubishi, Ford and Firestone’s concealment from
consumers of serious product defects. Ironically, in the United States, it was
during the apogee of the so-called New Economy that the distrust of the
corporation was at its highest in decades Switzerland, became the venue to
elaborate a response that would go beyond the bankrupt strategy of denying
that corporate-driven globalization was creating tremendous problems to
promote a strategy that would ‘bring the fruits of globalization and free trade
to the many’, as British Prime Minister Tony Blair put it.
 Cracks in military hegemony

But there is, equally of consequence, strategic power, and this, even
more than corporate power, is concentrated in the United States.
Strategic power cannot be reduced, as in orthodox Marxism, to
simply being determined by the dynamics of corporate control. The
Pentagon has its own dynamics, and one cannot understand the US
role in the Balkans or its changing posture towards China as simply
determined by the interests of US corporations. A far-flung system
of bases and the ability to project force into every corner of the
world such as that possessed by Washington are usually seen as
indicators of tremendous strength.
 The crisis of the neoliberal order
The Crisis of the Neoliberal Order Increasing resort to unilateralism and the brazen
manipulation of multilateral mechanisms to achieve hegemony by the United States
was an important source of the crisis of legitimacy that began to grip the global order
in the late 1990s. But equally important as the erosion of multilateralism as a source of
de-legitimation was the spreading realization that the global neoliberal regime resting
on free trade and free markets could no longer deliver on its promise. That the system
could not create prosperity for all but only the illusion of it was something that many
observers had known for some time. However, the realities of growing global poverty
and inequality were neutralized by the high growth rates and the prosperity of a few
enclaves of the world economy, like East Asia in the 1980s, which were (mistakenly)
painted as paragons of market-led development.
 The degeneration of Liberal Democracy

Corporate power or military power that has traditionally been the USA’s strongest
asset but, following the thinking of Antonio Gramsci, its ideological power – its ‘soft
power’. The USA is a Lockean democracy – that is, its foundation is the political
philosophy of the late-seventeenth century English thinker John Locke – and its
ability to project its mission as the extension of systems centered on free elections to
choose governments devoted to promoting liberal rights and freedoms continues to
be a strong source of its legitimacy in many parts of the world. The trend away from
authoritarian regimes and towards formal democracy in the Third World happened in
spite of rather than because of the United States.
 The rise of The Movement
The elites benefiting from globalization were clueless about the depth of resentment
and rage they had provoked. The hurricane of people's protest moved on to
Washington during the World Bank-IMF spring meeting in April 2000. Tens of
thousands besieged the Summit of the Americas in Quebec City in late April 2001.
After 9/11, pro-globalization forces tried to turn the tide by trying to extend the
range of terrorist action to include the civil disobedience tactics of anti-corporation
globalization activists. With profit margins slim or nonexistent, survival increasingly
meant greater and greater dependence on Wall-Street financing. Many mergers
ended up consolidating costs without adding to profitability, as was the case with
America Online-Time Warner. It was this technique of trading on the illusion that
resulted in the stratospheric share values in the high-tech sector.
 Liberal democracy loses

In the so-called war against terrorism, there hasn’t been a certain victor as of yet.
But there were definite losers. The TALIBAN is a prime example of this. The Liberal
democracy in the United States was the other major loser, as its representativeness
had already been questioned by many people before September 11th. Not even the
Cold War was described in such totalitarian terms as the War on Terror. Already in
trouble before September 11, American liberal democracy has been further
undermined by the Republican right’s post-September 11 actions. It’s conceivable
that the “culture civil war” between liberals and conservatives will grow less
peaceful as it becomes clear that the primary goal of this effort is to manage internal
opposition and drive a domestic counter revolution.
 Porto Alegre and the future

Porto Alegre of the future must provide sustainable development and citizens`
emancipation with coordination between government, private initiative, and civil
society. reproduction`, access to wealth and sustainable development, civil
society and the public arena, and political power and ethics in the new
societyPorto Alegre, of course, was one moment of a larger process of charting
alternatives.