The technology companies that dominate the computer and cellular phone industries originated in the United States but have moved their production and funds overseas to reduce costs and tax burdens while maintaining a huge market within their country of origin. While the populace feels manipulated and rankled by this fiscal betrayal, the impact also affects tax revenues.
International corporations are large conglomerates of multifaceted funds and diversified interests that extend over political boundaries. With manufacturing, production, and markets regulated by multiple governments, international corporations would seemingly be restricted by layers of restrictions from various political powers. Because of significant economic leverage, many if not most of the largest international corporations are raised above the laws for certain portions of their activity and use this positioning to reduce tax burden, lower wages, and avoid the scrutiny of the harshest legal requirements. Additionally to intentional skirting of straight-forward interactions, international corporations transcend their nation of residency and create market competition globally between nations that can interfere or interrupt financial, political, and, possibly, military interactions between countries involved.
The technology companies that dominate the computer and cellular phone industries originated in the United States but have moved their production and funds overseas to reduce costs and tax burdens while maintaining a huge market within their country of origin. While the populace feels manipulated and rankled by this fiscal betrayal, the impact also affects tax revenues. Since the maritime globalization of markets, corporations have dominated quantity, volume, and competition of international goods. The East India Trading company controlled enormous resources and fielded a company navy and army which in India alone had over 200,000 participants.
While the time of political imperialism has ended, corporate imperialism has continued and, arguably in the last three decades, increased. Because of mismanagement, rate and interest manipulation, and lack of accountability, large corporations created a financial bubble in the United States in the early 2000s and were responsible for the collapse of global markets. The burden for those mistakes has been shouldered by the lower classes, and the recovery since that market collapse has been snatched by the instigators of the financial disaster, largely the giants of the business world.
Many corporations are international. This allows an interplay between markets and cultures. Beneficially, this unites countries with common interest, incentives peace, and encourages the innovation and productivity that occur when different viewpoints meet. Nonetheless, giant conglomerate companies can unite to manipulate resources, prices, and competition. Corporations function more like countries than businesses because their interests transcend political boundaries. With the major exception of Chinese government-run companies, the largest, wealthiest entities in the world are corporations. If Walmart, the largest corporation, was a country, it would rank twenty-fifth globally. That places Walmart just behind Argentina’s incredible production of meat, soybean, and mining. Oil giants like Exxon-Mobil would be similarly ranked.
The interests of those companies are themselves regardless of their country of origin or headquarters. The United States in the largest producer and exporter of soybean in the world, but if Monsanto initiates extensive soybean production in Brazil, the second largest soybean producer, that reduces the United States’ market percentage. By aiding Brazil’s production, Monsanto reducing the market power of the United States, its host country.
This international economic approach of corporation over country goes back centuries, but with much of the European world being absolutely dominant economically and militarily in that world, the competition created by market entities exerts notable impact on the effectiveness on a nation to negotiate control of its resources and productions.
In the globalizing world with a strong back-lash to freedom of trade in the far-right political movements of European and America, will the largest corporations of the world, largest based in those Western nations, continue their business regardless of the political antagonism they create, or will the non-Western world with its increasing population and market power welcome those expatriate companies and inherit market dominance? Money moves the world, and governments, by nature, have a negative budget.
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Agatha Tyche