With the advent of Globalization, corporations can now operate in multiple countries. By utilizing outsourcing, these businesses exploit the huge economies of scale. The “race to the bottom” cause the third world countries to reduce their taxes, remove the trade restrictions and sell themselves to earn the bid for the companies. Such companies profit from these situations, causing problems such as child labor, sweat shops and destruction of native land.
The main aid for Globalization is the immense technological development. New communicational methods; VOIP calls, Business Skype and other similar programs have allowed top level management to communicate with their employee, helping to make quicker and effective decisions. Specialized means of transportation of goods such as huge sea-containers, railway system and heavy road machinery have made goods accessible to every part of world. Some of the Companies in the race of Globalization are Coca-Cola, McDonalds, Nestle, Apple and the list continues.
Information Source: http://www.infed.org/biblio/globalization.htm
Images Source: http://outsourceportfolio.com/wp-content/themes/revol/images/blogs/globalizationBusinessFlow.png
