CHAPTER1GlobalizationandRegionalEconomicIntegration第一頁，共三十四頁。INTRODUCTION

TransnationalCorporationanenterprisesuchasone“whichcontrolsassets,factories,mines,salesoffices,andthelikeintwoormorecountries.”In1973HowhastheUnitedNationsdefinedtheTNC?第二頁，共三十四頁。anenterprise(a)comprisingentitiesintwoormorecountries,regardlessofthelegalformandfieldsofactivityofthoseentities,(b)whichoperatesunderasystemofdecision-makingpermittingcoherentpoliciesandacommonstrategythroughoneormoredecision-makingcenters,(c)inwhichtheentitiesaresolinked,byownershiporotherwise,thatoneormoreofthemmaybeabletoexerciseasignificantinfluenceovertheactivitiesoftheothers,and,inparticular,toshareknowledge,resources,andresponsibilitieswithothers.In1984HowhastheUnitedNationsdefinedtheTNC?第三頁，共三十四頁。OurdefinitionofTNCsAnenterprisehassubstantialdirectinvestmentinforeigncountriesandactivelymanagesthoseoperationsandregardsthoseoperationsasintegralpartsofthecompanybothstrategicallyandorganizationally.第四頁，共三十四頁。TNCsManagementFormulationofstrategiesandmanagementsystemstotakeadvantageofinternationalopportunitiesandrespondtointernationalthreats第五頁，共三十四頁。TNCsintheglobaleconomy

TheuniverseofTNCsislarge,diverseandexpanding.SomeTNCsarebiggerthancountries.ThelargestTNCsremaingeographicallyconcentratedinafewhomecountries.

第六頁，共三十四頁。Thedegreeoftransnationality–ameasureoftherelativeeconomicimportanceofforeignaffiliatesintotaleconomicactivityTheTransnationalityIndexiscalculatedastheaverageofthefollowingthreeratios:foreignassetstototalassets,foreignsalestototalsalesandforeignemploymenttototalemployment.TransnationalityIndexTNI第七頁，共三十四頁。OthermeasuresoftransnationalityTheInternationalizationIndex(II)istheratioofaTNC’sforeignaffiliatestototalaffiliatesTheGeographicalSpreadIndex(GSI),iscalculatedasthesquarerootoftheInternationalizationIndexmultipliedbythenumberofhostcountries.第八頁，共三十四頁。Whatisglobalization?TheshifttowardsamoreintegratedandinterdependentworldeconomyTwocomponents:TheglobalizationofmarketsTheglobalizationofproduction第九頁，共三十四頁。GlobalizationofMarkets“Merging

ofhistoricallydistinctandseparatenational

marketsintoonehugeglobalmarketplace.”Theneedsofcustomersformanyproductsandservicesaregrowingmoresimilar.Andcustomerssearchtheworldfortheirsuppliesregardlessofnationalboundaries.Manyfirmsofferastandardizedproductworldwide.第十頁，共三十四頁。TheLargestGlobalMarketsNotConsumerGoodsButIndustrialGoodsandMaterialsCommoditiessuchasaluminum,oilandwheat.Industrialproductssuchasmicroprocessors,aircraft.FinancialassetssuchasU.S.TreasurybillsandEurobonds.第十一頁，共三十四頁。GlobalizationofProduction“Thesourcingofgoodsandservicesfromlocationsaroundtheglobetotakeadvantageofnationaldifferencesinthecostandqualityoffactorsofproduction(labor,energy,landandcapital).”ManymuchsmallerfirmsarealsogettingintotheglobaldispersalofproductionanddesignaswellasgiantssuchasBoeing.Tolowertheiroverallcoststructureand/orimprovethequalityorfunctionalityoftheirproduct.“GlobalProducts”第十二頁，共三十四頁。GlobaldriversTwomacrofactorsthatunderlietrendtowardsgreaterglobalizationDeclineintradeandinvestmentbarriersGlobalizationofmarketsandproductionhasbeenfacilitatedbyreductionintradebarriersandremovalofrestrictionstoforeigndirectinvestment.TechnologicalchangesMicroprocessorsandtelecommunicationsTheinternetandworldwidewebTransportationtechnology第十三頁，共三十四頁。ImplicationsforProductionandMarketGlobalization第十四頁，共三十四頁。

Globalizationdebate-ProLowerpricesforgoodsandservicesEconomicgrowthstimulationIncreaseinconsumerincomeCreatesjobsCountriesspecializeinproductionofgoodsandservicesthatareproducedmostefficiently第十五頁，共三十四頁。Globalizationdebate-ConDestroysmanufacturingjobsinwealthy,advancedcountriesWageratesofunskilledworkersinadvancedcountriesdeclinesCompaniesmovetocountrieswithfewerlaborandenvironmentregulationsLossofsovereignty第十六頁，共三十四頁。EffectsonManagers

Globalization:Pros&ConsGreatopportunitiesformanagers.Increasedrevenueopportunitythroughglobalsales.Reducedcostsbyproducingin‘lowcost’countries.Managersnowfaceamoredynamicandexcitingjobduetoglobalcompetition.Shouldvaryitspracticescountrybycountry.Mustworkwithingovernmentregulations.Currencyconversionpresentsuniqueproblems第十七頁，共三十四頁。RegionalEconomicIntegrationRegionaleconomicintegrationreferstotheprocesswherebycountriesinageographicregioncooperatetoreduce,andultimatelyremove,tariffandnontariffbarrierstothefreeflowofgoods,services,andfactorsofproductionbetweeneachother.第十八頁，共三十四頁。LevelofEconomicIntegrationFreeTradeAreaCustomsUnionCommonMarketEconomicUnionPoliticalUnion第十九頁，共三十四頁。EconomicIntegrationFreeTradeAreaAllbarrierstotradeamongmembersremoved.Eachcountrycandetermineowntradepoliciestowardnonmembers.CustomsUnionEliminatesbarriersamongmembersandhasacommonexternaltradepolicy.CommonMarketAllowsfactoroftheproductiontomovefreelybetweenmembers.EconomicUnionNobarriersamongmembers,commonexternalpolicy,commonmonetaryandfiscalpolicy,harmonizedtaxratesandcommoncurrency.PoliticalUnionHasacoordinatingbureaucracyaccountabletoallcitizens.第二十頁，共三十四頁。CaseForRegionalIntegrationanattempttoachieveeconomicgainsfromthefreeflowoftradeandinvestment.Theirpoliticalweightwouldbeenhancedintheworldbygroupingtheireconomic.Itiseasiertogainagreementamongalimitednumberofneighboringcountries.第二十一頁，共三十四頁。CaseAgainstRegionalIntegrationItisneverwithoutcostsfortheminority.LossofjobsEnvironmentdegradationFirmsindevelopingcountrieshavetocompeteagainstefficientfirmsfromdevelopedcountries.Concernsovernationalsovereigntyoftensloworstopintegrationattempt.第二十二頁，共三十四頁。TradecreationandtradediversionTradecreationoccurswhenhigh-costdomesticproducersarereplacedbylow-costproducerswithinthefreetradearea.Tradediversionoccurswhenlow-costexternalsuppliersarereplacedbyhigh-costsupplierswithinthefreetradearea.Regionalintegrationwillnotincreaseeconomicwelfareifthetradecreationeffectsinthefreetradeareaareoutweighedbythetradediversioneffects.第二十三頁，共三十四頁。RegionaleconomicintegrationinEuropeEuropehastwotradeblocksEuropeanUnionSeenastheemergingpowerwithalmost27membersEuropeanFreeTradeAssociationHasonlyfourmembers第二十四頁，共三十四頁。EvolutionoftheEuropeanUnionProductoftwopoliticalfactors:DevastationofWWIandWWIIanddesireforpeaceDesireforEuropeannationstoholdtheirown,politicallyandeconomically,ontheworldstage1951-EuropeanCoalandSteelCommunity.1957-TreatyofRomeestablishestheEuropeanCommunity1994-TreatyofMaastrichtchangesnametotheEuropeanUnion第二十五頁，共三十四頁。RegionaleconomicintegrationoftheAmericasRegionaleconomicintegrationisontheriseintheAmericasNAFTAMERCOSURPlansforFTAA第二十六頁，共三十四頁。

NAFTAEnforcedinJanuary,1994,Over10yearperiod:tariffsreduced(99%ofgoodstraded)RemovalofmostbarriersoncrossborderflowofservicesProtectionofintellectualpropertyrightsAppliesnationalenvironmentalstandardsEstablishmentofcommissiontopoliceviolationsRemovalofrestrictionsonFDIexceptincertainsectorsMexicanrailwayandenergyUSairlineandradiocommunicationsCanadianculture第二十七頁，共三十四頁。ANCOM:AndeanPactBolivia,Colombia,Ecuador,Peru,VenezuelaCartaganaAgreement,1969.Nearlyfailed.GalápagosDeclaration,1990.Theestablishmentofafreetradeareaby1992;acustomsunionby1994;acommonmarketby1995.Stillhasmanypoliticalandeconomicproblems.第二十八頁，共三十四頁。TheMercosur1988:Argentina,Brazil.1990:Paraguay,Uruguay1995:Agreedtomovetowardafullcustomsunion.Positive:Tradequadrupledbetween1990-1998.ThecombinedGDPgrewatarateof3.5between1990-1996.Roadblock:Hassignificant

tradediversion

issues.Economicproblems,firstinBrazil(1999),theninArgentina(2001)hasputplansforthecustomsuniononhold.第二十九頁，共三十四頁。RegionaltradeblocsinAsia:ASEANCreatedin1967ObjectivetoachievefreetradebetweenmembercountriesandachievecooperationintheirindustrialBrunei,Indonesia,Laos,Malaysia,thePhilippines,Myanmar,Singapore,ThailandandVietnamProgresslimitedbyAsianfinancialcrisisofthe90’s第三十頁，共三十四頁。AsiaPacificEconomicCooperationFoundedin1990toincrea