Jobs leak overseas if labor market conditions aren't sufficiently favorable. In the current climate, business is able to intimidate labor and government by threatening to move unless granted concessions on wages and taxes. Thus the burden of taxation has increasingly been shifted from corporations to households. Financial leaks, due to increased integration of financial markets. Financial capital now flees those countries pursuing expansionary monetary policies that lower interest rates, in favor of countries with more attractive rates.
Financial capital is also resistant to any hint of inflation.
On one hand, policy makers have systematically liberalized trade, encouraged export-led growth and multinational corporations, promoted foreign direct investment, and abolished or suspended capital controls. On the other, technological and organizational change have increased the mobility of both physical and financial capital. The multinational corporate form is now common place, and a new corporate form predicated upon global subcontracting is emerging. These developments are the natural outgrowth of market forces, and represent the systemic workings of a dynamic capitalist economy. Business seeks to maximize and grow profits, and it does this through innovation in three areas.