Corporate Globalization involves the integration of economy through free trade treaties with the transnational corporations consolidating economic and political powers under them. The negative aspect of the Corporate Globalization is to neglect the labor rights, national sovereignty, and the existing environment. The impact of globalization is found in the quick changing process of work, the costs and standards of living, and present condition of food and environment. Large foreign investors like Coke, Microsoft, Sony, BMW, and so forth are engaged in corporate business marketing their merchandises all over the world.
Corporate Globalization has stepped in holding the hand of the World Trade Organization or WTO. The WTO was propounded in the year 1995 at the time of the Uruguay round of negotiations. Presently 146 countries are members of the World Trade Organization. Of the policies taken by this globalized commercial agency, the major is to transform the general tariff agreements and trade policies into a global code of commerce code. It is undoubtedly one of the main instruments of Corporate Globalization.
Other international commercial agencies regulating the different aspects of Corporate Globalization are the IMF and the World Bank. Some of the essential policies taken by them enhancing the globalization of the corporate sector are like -
- Liberalization of trade
- Privatization
- Government Spending being reduced
- User fees being imposed
- Promotion of the export
- Raise in the interest rate
With the process of removal of tariff regulations and protections for the agriculture and industries of the developing nations, the rural poor mass got displaced to a great extent. For instance, in the case of Mexico, with the increase in the agriculture imports coming from U. S, millions of farmers, who find themselves unable to catch up with Cargill and Archer Daniels Midland. The policies of IMF and World Bank have initiated the selling of the public enterprises to private foreign investors. This process of privatization is again interlinked with salary cuts for workers in the privatized enterprises. The reductions in the spending of the government cut the possibilities of the government providing any benevolent services to the impoverished classes of the society. The other problems of the Corporate Globalization are rural displacement and layoffs in the industrial sector. The interests of the poor mass are overlooked and the international corporate agencies are only interested in seeking the profits. Under the policies of the globalized corporate sector for using the services provided by the government, charges are to be paid. Again in order to promote exports the domestic demand is not considered during the production. There are masses whose own land has been sacrificed to meet the demand of the foreign markets.
It has been proved that the policies of the WTO have resulted in less good and more harm. Some of the worst effects of the Corporate Globalization are like -
- Items made more expensive
- Monopolization of the supply management, tariff rates, and production
- Poverty rate increasing all across the globe
Henceforth, such impact of Corporate Globalization is said to have brought the death knell for the poor and the middle classes. The harmful aspects of the Corporate Globalization are been under severe criticism from political activists, environmentalists, democrats, and advocates of human rights.
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