By Moreno Zani – Longitude # 18
In this last decade much has been said about Globalisation, particularly when associated with the abolition of commercial barriers, the increasing mobility of raw materials, work force and capital, just to name a few. On further reflection, this is not a recent phenomenon, but on the contrary has roots from a long time ago. Consider the Industrial Revolution, with the introduction of large scale production and the consequential development of infrastructure at the start of the century, which aided in shortening the distances of the World between different economies and the development of commercial trade agreements which became a starting point in the 60’s for the future launch of the World Trade Organisation (WTO), even here just to mention a few. The same development and rise of commercial trade created a stronger competitive impetus, particularly in the transport sector, consequentially reducing costs and amplifying even more the mobility of goods and people.
This model of global growth contributed to the rise and development of the large Corporations, initially locally and later multinational, as they benefitted from the competitive advantage of producing goods in places where employment costs and raw material prices were low, together with the relatively cheap physical transfer of goods and the increasing commerce of finished products in the developed Nations.
There are differing views regarding the effects of Globalisation and the consequential creation of international corporate champions; some favourable and others contrary, even violently so. Any one of us is able to formulate an opinion regarding this phenomenon. However, that which should be analysed and scrutinised are the political and social effects which derive from the economic power and influence of the large Multinational Corporations, across the different areas of the World.