Cultural Aspects of Cross Border Mergers and Acquisitions
February 12, 2025
After the Japanese wave of business process management came the concept of Business Process Re-engineering which rocked the world of BPM. The idea of BPM and the resultant benefits have been mentioned below: What about Those Companies That Did Not Change As said earlier, the Japanese companies were able to understand the dimension of time […]
In effecting Imports as well as Exports, documentation plays a very important role. Especially in case of imports, the availability of right documents, the correctness of the information available in the documents as well as the timeliness in submitting the documents and filing the necessary applications for the Customs Clearance determines the efficiency of the […]
Use of computer systems is a post second world war phenomenon. The first working computer was developed by two scientists at the University of Manchester, UK. However, commercial applications of computer commenced during the 1960s. Pre ERP systems In the sixties, computers were bulky, noisy and without the facility of standard operating systems. The organizations […]
What the Proponents of Governmental Bailouts Have to Say about Bailing Out Businesses The ongoing economic and financial crisis due to the Covid 19 outbreak has reopened the debate about how far and how much the government help businesses struggling due to the crisis. Indeed, this was the same debate that erupted during the Great […]
The Business environment is highly dynamic and the rules of business are being re written every day. Several changes in the economy, technology and other areas are affecting the way the business is conducted. There exists a need for every Business Organization to keep improvising and adapting to the changes that are taking place and […]
Of the many criticisms of globalization, the prominent critique relates to the fact that globalization erodes national sovereignty and takes away the power of governments. By allowing international corporations and multinational businesses to set the economic (and often, the political agenda), critics argue that the nation state becomes irrelevant.
The point to be noted is that if global corporations can set the agenda, there is nothing inherently wrong about that. Just that capitalism runs on the profit motive to the exclusion of everything else and hence, businesses simply cannot be allowed to set the terms of the political and economic discourse because the nation state is answerable to all citizens and not just to the wealthy and privileged.
It needs to be mentioned that nation states exist for welfare of the citizens and not for making profits alone. By usurping the powers of the nation state, the corporations reduce everything to money and profits and this has a corrosive effect on the welfare of the citizens.
Ever since the 1990s, it has become fashionable for corporations to demand global rules of doing business that are uniform across the world.
In other words, international businesses want the same set of rules and procedures in all countries i.e. the right to repatriate profits, the right to exploit natural resources, uniform taxes, and tax structures, the removal of barriers on entry and exit, among other things.
This means that the notion of a global marketplace that is consistent across nations and one that is friendly to the corporations is the aim of this endeavor. This is definitely a plan to take away the power of the governments to set the rules and though there are many experts who point to the enabling features of globalization especially where lifting billions of people out of poverty is concerned, critics are aghast that the poor and underprivileged who are already suffering would be hit by a double whammy.
Given the fact that some multinationals have more revenues than some countries entire economic output, the power of these companies is indeed deep and wide.
Hence, the temptation to override national governments and instead, set supranational rules to be followed results in the ceding of sovereignty by the governments. As has been discussed in the previous sections, this results in the notion of profits before people and does away with the basic humanitarian impulse that is behind the modern concept of democratic states.
The supranational economic order does not have allegiance to nations or nationalities but to super elite whose interests span across countries and whose loyalties lie to the economic principles that are devoid of humane and social objectives.
Finally, global corporations have grown in power in recent decades and this trend while contributing to global growth has also produced sharp inequalities and led to exacerbation of ethnic and social tensions between the haves and the have-nots.
Hence, there needs to be a moderation in the way global corporations are allowed to usurp the power of national governments and the way in which national sovereignty is ceded to the international businesses.
Your email address will not be published. Required fields are marked *