Firms that cannot measure up to the economic principles and practices of the industrialized economies, for example, are confronted with the prospect of irrelevancy. Here, a caveat needs to be inserted. Under the most ideal setting, especially one afforded by the principle of free market ideology, downsizing and closure should obviously be accepted natural facts of life. Firms that cannot persevere under intense competition must, of course, face the music. To argue that General Motors must be given every right to set up its operation in Malawi or Morroco, alas unencumbered by any rules or regulations, is to favor the mighty at the expense of the meek.
Globalization therefore revives the shadow of colonialism.
That developing countries cannot withstand the frontal pressure of globalization is clear. Their experiences with capitalism are too recent to make them good competitors, if at all. Take Proton, Malaysia s national car industry for instance. Malaysia s membership in the World Trade Organization will compel Proton, in 2002, to give up the benefit it enjoys from the protective duties. How Proton will fare against the other established car manufacturers must now be of grave concern to the government and management alike.