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. First, firms can gain a competitive advantage over rival firms by capturing a greater share of the existing market or creating a new market that destroys the old. Third, business engages in political innovation whereby corporations capture government policy and change existing laws and regulation so as to gain an advantage over competitors and over labor.
Globalization shows clear signs of organizational, technological, and political innovation.
But such innovation has been operating longer and more forcefully within the domestic economy. The same tactic of either moving or threatening to move has also been used to win tax concessions from state governments. It also explains why uninsurance benefit coverage rates have declined. Workers' rights to reorganize have been de facto denied by laws that are inadequate to the task of protecting against corporate intimidation during unionization drives. Globalization is being driven by the same forces that produce these domestic outcomes, and in fact aggravates these tendencies.