Companies are less attached today than ever to their country of origin. A seasoned observer of corporate behaviour, Barnet believes that 'the mobility of these companies undermines the power of national governments to deal with traditional economic and social issues'. All the pressure within the system,' he argues, 'is to increase the output per worker. The key point, says colleague John Cavanagh, is that 'it doesn't add up globally. There are 38 million new people entering the job market yearly in the developing world, maybe 47 million worldwide.
Corporations use the word 'globalization' to describe the transformation in the world economy.
According to this view Western nations have grown fat and lazy. To compete with the dynamic, efficient economies of Asia we've got to cut costs. There may be pain in the short run but at the end of the day natural comparative advantages will allow all countries to emerge as winners. An integral part of this 'globalization' thesis is the push by powerful corporations for 'free trade'. Governments pledge their allegiance to it.