Unit 3

In this unit, the focus will be on the world economic

Transnational Corporation

• Generally, transnational corporation means those companies who have a large scale of business over several countries. As being corporation that trading or co-operating internationally, corporation itself has not only a huge influence in the business area, but also in political area with the same level of influence to other country. As for the top 500 corporation in the world, the wealth accumulated by those countries have already overcome some of the far periphery or even near core countries. Therefore, it has a crucial position in the formation of world we have today.
  
• However despite the fact transnational corporations have a great influence globally, how can they accumulate the gigantic amount of wealth they have right now?

• As the video reveals, one of the crucial factors that transnational corporation are able to grow to the size they are nowadays is the support from the law. Since the legislate system regulate corporations are able to fund politicians or party as they want, they are  wable to fund the politician that they believe will benefit the corporation. And as for the politician, after being funded by the corporation, they have to looking for the law or policies that can benefits their founder. 
• On the other hand, transnational corporation are able to create trade that can bring them maximum benefit with those countries who are in poor condition. 
  
• In order to maximum the profit, transnational corporation usually set up their  factories in near core countries due to the cheaper labor. Furthermore, as mentioned in last blog concession companies during colonialism will import materials from colonies and export product with higher prize back to the colonies. Similarly, by importing materials from far periphery countries or near core countries with a low price, corporation is able to produce it into products within the least cost and sell it to other country within a common or even higher price. 
• Therefore, within this cycle goes on, transnational corporation are able to grow bigger and bigger.

Colonialism and Concession Company.

• Started from 16th century, within the development in society and technology, the population in Europe experienced a rapid expansion. Meanwhile within more and more new land being found by people during the age of discovery, the idea of colonialism started to plant in people's mind. The idea of colonialism was originally migrating some of the population to the land that had been just found in case to solve the conflicts of overpopulation. As the action of colonization getting bigger, people in Europe also realized how can they benefit from this process which later coming up the idea of concession company.
• The first appearance of concession company can be traced back to 16th century. It was originally formed by a group of merchants as a private trading company. But later then, when European governments started realized the existence of concession company can reduce the economic burden colony put on the government. which means, by giving concession company full authority in the colony, governments in Europe are able to put more budget on enforcing their military forces.
  
• Even though concession company were given the authority to rule the colony. It is still not the reason why can some concession company became extremely powerful. As still being a trading company, the right to trade monopoly is their most important weapon go against other competitors. In most of cases, concession company's business including cash crop, different kinds of ore, and even human labors in the early stages. 
  
• Within concession company importing raw materials in a low prices, produces it into product and sell it back to colony with a price times higher. It brought both government and company a huge amount of wealth. 
• Among all the concession company: British East India Company was one of the most successful and powerful one back to that age.
• In 18th century, British East India Company become to its peak of power. After the Carnatic War, they become the dominant company in India with a formal military forces. In addition, the emperor of India also granted the company the power of diwani which basically means the right to harvest of Bengal, Bihar, and Orisa. Therefore, it makes the company formally having a political influence in the world as a trading company.
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  Since the British East India Company was so successful during its time, it left a significant influence to the Indian society. One of the best evidence to prove that is the widely using of English in India.
• As being a concession company that created for colonialism, British East India Company did leave India some harm during the colonization era. But rather than that, it left India a huge impact not only in society but also in economic.