GLOBALIZATION

Globalization and Government Capacity to Manage Trans-national Corporations

Globalization and Government Capacity to Manage Trans-national Corporations

Introduction

The traditional view of Globalization entails that it can generally be recognized as a movement of people from one place to another (Andreas, 2011, p. 17). However, the term of 'Globalization' in today's rapidly changing business and technological environment has a broader concept and defines a process of economic and social connection between not only people but also the organizations and businesses (Jacobi 2012, p.51). It would not be wrong to say that today this world gives a picture of global village as everything from people to businesses are interconnected across the world regardless of physical borders. The influx of people by global movement and transfers of businesses impacts the system of countries in relation to not only their culture, society, or politics but also the technological and business environment of countries (Kiyoshi, 2012). No doubt, globalization has brought many benefits to people as today people are more connected then before, they work in their home countries but for foreign organizations, many businesses entered to foreign markets with their innovative products, etc.

However, there are some issues that need serious attention from businesses and the government. Most of the researchers agree that globalization can be seen as a new chapter of America's growth as many America businesses now have opportunity to access foreign workers in other countries in order to save their cost (Jacobi 2012, p.51). They further argue that globalization has eliminated differences between regions and cultures where all workers in other countries work for an American company in their own country but under the guidelines of international or American standards. In fact, outsourcing allow American companies to transfer their operations to other counties such as China or India where workers manufacture products for companies like Apple, Intel, Dell, HP, etc. on cheap wage (Jacobi 2012, p.51). However, there are a significant number of people who claim that outsourcing can be seen as a killer of America's job market. They argue that American companies move their operation to cheap countries keeping eye on the economic benefits rather than their national obligation of creating jobs for Americans.

Further, the role of government in this regard is also criticized by this group as people say that it is the government that gives facilities to American businesses in order to outsource their operations to other lands. They also claim that America has 35 percent tax for corporate sector that is the highest in comparison of other countries (Jacobi 2012, p.51). According to this group, tragedy begins from government's policy of higher taxation for multinational companies and their ignorance. In other words, highest percentage of tax increases cost for businesses and ignorance for increasing outsourcing allows businesses to hire spend more on foreign workers as wages. This paper aims to understand the role of outsourcing, the Apple Inc. and government's efforts to control Apple.

Discussion

Globalization

It is essential to know that movement of people, ideas and goods usually initiates the globalization ...