The Global Corporation

During a recent conversation with a New York based investment counsellor, we were exchanging views about the states of the world economies. Our discussions followed the now-common themes.

Then he startled me by observing that the healthy US-based corporation would survive and prosper under most conditions. They will go anywhere opportunities present themselves. Globalization’s thrust will facilitate a good corporation’s move to a company without borders.

Many forces are at work to enhance an expanding global economy. Included are the creation of universal accounting standards that will satisfy regulatory and analytical requirements across many jurisdictions. Communication and logistical systems exist now that send everything, everywhere quickly. Capital moves with rapidity that it defies the imagination. Manufacturing and service industries now locate where there are fewer and fewer labour and infrastructure impediments. Schools of business are heavily committed to internationalization of their curricula. And competitiveness always increases.

We know there are strong forces that resist the growth of the global corporation. History shows that universality does not necessarily work to everyone’s advantage. All too often it has been just the opposite.

Perhaps the era of commercial gun boat diplomacy is diminishing fast enough to allow for the emergence of truly excellent international corporations while maintaining sovereign control.

Sounds callow? Certainly a long way from reality without major changes in legal, political and social environments. They are the subjects of much deliberation.