National Economies in Globalization

This chapter examines various effects of national corporations on national economies by offering an overview of globalization and comparing the various effects and patterns of the U.S., Japan, South Korea, and Germany. Globalizing production by national major corporations does not necessarily result in a “hollowing-out” of domestic production, as nationalist pessimists claim, nor in an upgrade of the national economy through creative destruction by free markets, as claimed by neoliberal optimists. Finally, this chapter examines specific methods of adaptation and adjustment of three ideal types of national economies, including the neoliberal U.S., the statist coordination model of Japan, and the social coordination model of Germany.