The governance of globalization and the role of technology Consider what globalization, whether political, social, or economic, does. Globalization moves borders. Next, consider removing the term ‘global’ and substituting ‘regional’ or ‘national.
’ The plumber, the tax preparer, and the real estate agent may be involved in regionalization or nationalization. The real estate agent may be a multi-regional firm with offices in multiple cities or states, as compared to multinational corporations. The plumber may be a trans-regional business by traveling to locations in neighboring cities or counties, as compared to transnational corporations. If, and when, someone in another country accesses the real estate web site, makes an inquiry, and hires them to find property because they are relocating to the U.
S., then the local realtor has participated in globalization. The difference between the local firm and MNC/TNC is intent. The MNC/TNC business model is intended to facilitate international trade while not eliminating local business opportunity. The local firm’s marketing strategy, a website that provides information to local customers, positions them to receive international inquiries, and respond only by choice. MNCs/TNCs conducting local business need to be governed in local activities.
Local firms conducting global business need to be scrutinized for those activities. All businesses must register and report in the countries and localities they are based in. With the difference in laws in various nations, it is not feasible to create an international equivalent to the Secretary of State or Attorney General. What may be more feasible is to use an existing organization such as the United Nations as a clearinghouse where member nations provide database information on all businesses registered and conducting business in those nations.
For smaller businesses who are not required to supply audited financial statements, limited information from income tax filings could be provided by the member nation. Managing legal and compliance issues remains a challenge. Both local firms and MNCs/TNCs can avoid legal issues by choosing to do business in one country and not another or by changing their home base location to one with favorable laws and limited reporting requirements, such as the numerous U.
S. companies registered as Delaware corporations.Works CitedFlorini, Ann. “Business and global governance: the growing role of corporate codes of conduct.
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