Describe your reflection, after you watching the TED that is Who controls the world? by JAMES B. GLATTFELDER.
Expert Answer
After watching the video, the first idea comes to me, is the law of invisible hands given by Adam Smith. People own the private property and want to grow their wealth. In the process of growing their wealth, they set up enterprises and hire input factors of production such as labor and raw material. It makes a simple system or network of two nodes. At one node, there are firms, at another node there are households. Later on, other nodes such as government, international trades, suppliers and vendors get associated with the network and simple network becomes the complex network.
Though, the one factor does not change and that is ownership of the enterprise. All parties are benefiting from the network, but the most important beneficiary is the shareholder who takes the maximum risk. The shareholder among the all the shareholders, taking maximum risk owns the biggest share of control and they are very few as 737 as per the study discussed in TED. These few shareholders control the network of different parties and through this network the world is controlled.
Hence, getting profit from the network is one aspect that gives to many people, but the control remains with those who take the maximum risk of business and own the largest stake of shares in TNCs. It all starts with the invisible hands and becomes complex as the network grows.