Globalization Impact and Response

Corporate Re-organization Multi-national Corporations (MNCs) now

dominate the corporate world. Ben and Hall (2008) states that they account
for 1/3 of the world output and 2/3 world trade, the worlds trade in
manufactured goods and 80% of the worlds land cultivated for export crops.
In 1995, 85% of the top 100 MNCs were headquartered in the United States,
Europe and Japan.
The most prominent feature of corporate reorganization has been mergers
and acquisitions. For example, Canadian Imperial Bank (CIBC) and Barkleys
Bank; Life of Barbados and Barbados Mutual (SAGICOR), Kennedys
Enterprise acquired Pams Ltd.; Bargain Center acquired Grant Brothers.
Mergers impact on competition, create avenues for tax avoidance etc.

Political The process of globalization is shifting power away from

governments to multi-lateral institutions, e.g. WTO, MNCs and financial
institutions. Sovereignty has been constraint as a result of the extent of
economic inter-dependence. Markets, both local and global have reduced the
role of Government in economic affairs. Instead Governments are now being
encouraged to assume the role of facilitation for business by creating
favourable conditions within which business can operate.
For example the attempt at liberalizing the Telecoms sector.

Social A prominent feature of globalization is the widening of the gap

between rich and poor countries. This is reflected in differences in income
levels and other indicators of human well-being for e.g. life expectancy and
human well-being.
Impact on employment and job security - As markets are re-regulated and
businesses and money move more easily around the world, workers are
forced to compete for jobs. Technological advancements are making jobs
more insecure and job insecurity means that workers bargaining power is
eroded and wage levels undermined.

Response Government conduct Poverty Assessment and Unemployment

surveys and Programmes.
Cultural A global mass culture has emerged as a result of economic
globalization, international media, and international migration. The exposure
of small developing countries to the international media cable TV in
particular has had a major impact on lifestyles, consumer habits and
patterns of behavior. The outcome is a dilution of national identities and a
diminishing of national cultural and the emergence of international cultural
diversity.

Regional Cooperation - One positive effect of globalization has been

induced trade liberalization which stimulates co-operation efforts across
traditional linguistic barriers in the Caribbean.
For example ACS Association of Caribbean States, CARIFORUM
CARICOM, Dominican Republic and Haiti, (formed through the Lome
Convention), CARICOM CSME, NAFTA.