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The global corporation

Michael Jarvis's picture

Are we moving beyond the multinational corporation towards the truly global corporation? Samuel Palmisano, chief executive of IBM, makes this case in an article in the latest edition of Foreign Affairs. Mr. Palmisano sees a globalized 21st century where we need to abandon antiquated thinking on multinationals and embrace the emergence of “the globally integrated enterprise” that develops strategy, management and operations to integrate production worldwide. He argues that the global approach offers:

A better and more profitable way to organize business activities – and it can deliver enormous economic benefits to developed and developing nations.

However, to foster truly global enterprises serving the global market, Palmisano encourages creation of a global regulatory system through better cooperation between regulatory agencies. Without such change it is hard to see even the most globally inegrated company escaping the impacts of politics that remain decidedly local. (Also see a previous post about a Palmisano op-ed in the Financial Times.)

Comments

Friends, in relation to Palmisano’s article you might find the following comment I made on my http://teawithft.blogspot.com/ interesting. The global work-force needs some global representation too Sir, The head of IBM, Sam Palmisano in his (local) Multinationals have been superseded (FT June 12) makes a passionate defense of the “globally integrated enterprise” in order to diminish the dangers of that neo-protectionism that is dangerously lurking around and that could create havoc for the world economy. But his arguments also remind us that currently, absent of any true independent representation of Mother Earth’s long term interests the World Bank seems more a “Pieces of the World Bank, and the International Monetary Fund an association of very local central bankers. In this respect, in the frequent discussions about the need for updating the different voting rights and the Executive Boards of these institutions to current economic realities, what could be most beneficial is to find ways giving representation and voice to the real new kids in town, meaning all those workers, skilled or unskilled, legal or illegal, who nowadays represent jointly one of the largest and most vibrant economies of the world.

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