Transnationalism.
Microsoft, Yahoo, Google and Cisco Systems flipped the bird to United States Congress this week, by refusing to attend a hearing in Washington with regard to their business practices in China. In essence, these and other Corporate Entities are aiding the Chinese government in their attempts to limit access to certain information in China.
U.S. Congress has stated that these American firms have not been operating in keeping with the principles of free speech. I think they're rather missing the point. A Corporation is very much like a highly adaptable animal in that it will do whatever is necessary to survive. This includes methods such as diversification and transnationalism. These entities are larger in both population and income than many small nations. They operate across national borders with no prejudice, and in clear cooperation with the governments of their host nations. Furthermore, the American legal structure in recent years has been shaped to cater to the interests of these beings. In this case, I don't think there is anything that the U.S. Government could do to stop this activity.
The Corporation has evolved beyond the legal structure which created it. People talk about whether China or possibly India will overtake the United States as a world economic power. Again, this is not the point. We are leaving the age of the Nation-State. The lines of money are no longer the lines of international borders. Whether we like it or not, the Corporation is now more powerful than the Nation-State, and is the true inheritor of wealth and power here on Earth.
U.S. Congress has stated that these American firms have not been operating in keeping with the principles of free speech. I think they're rather missing the point. A Corporation is very much like a highly adaptable animal in that it will do whatever is necessary to survive. This includes methods such as diversification and transnationalism. These entities are larger in both population and income than many small nations. They operate across national borders with no prejudice, and in clear cooperation with the governments of their host nations. Furthermore, the American legal structure in recent years has been shaped to cater to the interests of these beings. In this case, I don't think there is anything that the U.S. Government could do to stop this activity.
The Corporation has evolved beyond the legal structure which created it. People talk about whether China or possibly India will overtake the United States as a world economic power. Again, this is not the point. We are leaving the age of the Nation-State. The lines of money are no longer the lines of international borders. Whether we like it or not, the Corporation is now more powerful than the Nation-State, and is the true inheritor of wealth and power here on Earth.
posted by Q. at 1:47:00 PM
1 Comments:
I had a conversation with a business manager recently on this topic. He digressed at length upon how communication is obliviating previously ingrained "national business" bureaus for the multinationals. IE, Brazil, for example, would have a largely autonomous branch of Cisco (say Brazil Cisco) with its own business controls and business models. It would operate largely independent of the main company. This was necessary for competition until the mid 1990s.
No longer, thanks to strides in "instant communication" that allow subordinate companies to receive marching orders from the main office. Multinationals have in only the past 15 years consolidated their previously "autonomous nation-states" under the unified umbrella of the mutlinational -- all with the same business controls, models, supply lines, and communication with the mother office.
Benefits are obvious. Mexico having problems meeting a production deadline for a big client? Transfer production in Italy over to that product and ship the product remainder directly. This type of strategy was previously only available "on-paper" but is now a daily reality.
As far as the USA goes...well... if you're a TRUE multinational, you can always move your home business office someplace else.
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