According to the UN, these globe-spanning private companies now control 70 per cent of world trade. From jet aircraft and microprocessors to TVs and automobiles, multinationals are firmly in command. The top five companies in each major market typically account for between 35 and 70 per cent of all world sales. Paulo and Bangkok to the leafy suburbs of Sydney and Seattle. Critics charge that the ability of multinationals to manage production on a global scale and leap national borders in search of lower costs and higher profits now threatens democracy itself.
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.