The Changing Face of Business Environment
Introduction The last decade has shown rapid development in the information technology and its application. This has helped changed the way we look at the world as well as the way business is conducted. Both business and trade have gained under the wave of information technology with improvement in efficiency, productivity and bottom line. Productivity […]
Production Module – Subcontracting and Materials Issue
Production Order Subcontracting – In the age of production outsourcing and the organizational focus on their core competency, subcontracting of production orders is assuming greater importance. In addition to the business functionality necessary for producing goods in house, sub contraction operations necessitates some additional business process such as generation of sub contracting purchase order. Sub […]
The Future of Energy
Abstract The three imperatives of sufficiency, safety, and sustainability of the global energy paradigm as it exists now along with the need to transition to a new energy paradigm are the two themes that are analyzed and evaluated in this report. The fact that the existing oil based paradigm has led to wars and conflicts […]
Business Process Improvement – Training Requirements
Business Process Improvement Projects have become a common tool for Organizations to help review their business operational processes from time to time and to bring about necessary improvements. Organizations as well as their processes as well as their markets, customers and products keep changing. In current times, technology is playing vital role in the way […]
Similarities and Differences in Implementation of Quality Frameworks in Manufacturing and Service Sector
Introduction A production defect in a company like GE (General Electric) might result in that specific product or the part being removed from the assembly line and not sent out as finished product. However, in the service sector, a process error might prove to be costly as in the case of the JPMC or Citigroup […]
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.
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Cross Border Mergers and Acquisitions and Some Recent Trends in this Field
February 12, 2025
