Corporate alliances at the global level have become more important, even for the biggest companies. Finally, globalisation and the associated changes in information technology are changing the way companies are managed. The traditional multinational was run on a multi-domestic model, decentralised around a corporate centre. Now there are two alternatives. On the one hand, the ease of electronic communication has empowered the corporate centre as continual surveillance of formerly decentralised operations is feasible.
Some companies plan production on a genuinely global basis for the first time.
Some have reorganised by function rather than country. Mr Cable argues that even if there is little conceptual difference in globalisation past and present, the speed and ease of communication matters. In the financial markets, the Asian crisis demonstrated that it allows the rapid spread of shocks. The former reduces national governments' monopoly power over their economies and even culture and language, the latter challenges the legitimacy of many of the activities governments have undertaken in the post-war era. Mr Cable thinks globalisation is a force for good, tending to improve living standards.