Blog #3: Globalization (Transnational Corporations).
- Founded in 1965, Zollner Electronics is a German company that specializes in the manufacturing of electronics and mechanics for advanced medical software and technologies. Although the company started in the small town of Zandt, Germany, it has now expanded to 20 different locations across the globe inclusive of Costa Rica. Some of the company’s success stories include research for molecular diagnostics in medicine, the creation of cardiac support systems for small children, and developing sensors in the data technology business that help remotely monitor buildings. Due to the company’s diverse pallet of services they have found tremendous global success. With most of Zollner’s locations being situated in Europe, Asia, or the United States, Costa Rica stands out on the list. Within central America, there are limited options for cutting edge electronic manufacturing & engineering services. According to the company “There were competitive options for Zollner to expand in Latin America however we chose Costa Rica for its stability, educational system, manufacturing resources, and strategic location.” The implementation of the location in Cartago, Costa Rica was also meant as a support and communication system for the two larger corporations set up on the West coast of the United States. In Costa Rica the company is specifically geared towards the production of automobile and office electronics. The Cartago location is more than 8,300 meters large and is home too 250 employees, generating an average of 13.23 million dollars in sales each year.
Citations:
- Zollner Electronics. (2021). About Us: Success Stories. https://www.zollner-electronics.com/en/about-us/success-stories
- QCostaRica. (2022). Zollner Chooses Costa Rica For Expansion Into Latin America. https://qcostarica.com/zollner-chooses-costa-rica-for-expansion-into-latin-america/#:~:text=%E2%80%9CThere%20were%20competitive%20options%20for,resources%2C%20and%20strategic%20location.%E2%80%9D
2. From the company’s perspective, Zollner offers a great deal of job opportunities to the people of Costa Rica. It is a unique company that does unique technological work yet the people running the business are still white men. This makes it seem as though the positions of power in the company are limited but the lower paying jobs on site are open for local workers. In terms of environmental impacts, most large electronic/industrial companies like Zollner are unsustainable and do little to no work to protect their surrounding environment. In terms of electronic manufacturing, the environmental impacts are a critical issue that must be addressed. In Europe, where Zollner is based, there is over 10 million tons of electronic waste produced every year. As a country that prides themselves on their sustainable efforts, Costa Rica should be monitoring the environmental impacts that Zollner has in their country and in others.
Citations:
- TheManufacturer. (2021). The environmental impact of electronics manufacturing. https://www.themanufacturer.com/articles/the-environmental-impact-of-electronics-manufacturing/
3. Costa Rica is not a colony of Germany, where Zollner is based, so I would lean towards calling this type of TNC neoliberalism. Though I am not sure I would label Zollner as either neo-liberalism or neo-colonialism. Putting environmental impacts aside, placing a large German technological company in Costa Rica creates the opportunity to benefit both the German economy and the Costa Rican economy. This conjoined effort to create jobs and work together to make money is an example of globalization and may even reduce conflict and competition, which is part of the neoliberalism definition. Neocolonialism is more structured, involving political control and dominance which are ideas and concepts that I would not associate with Zollner in Costa Rica. I do not think that Germany’s intent was to exploit Costa Rica when they decided to create a Zollener headquarters in Costa Rica.
