One of the arguments used against globalization is that companies have too much power over individuals. Philippe Legrain shows this to be an intellectual error in his book Open World: The Truth About Globalisation. He dedicates an entire chapter to this, entitled ‘Giants with Clay Feet’. He argues that correctly that governments - with the ability to tax, break up companies, regulate etc - have much more power than companies.
Moreover, he argues, “If you are worried about corporate power, you should support globalisation. Freeing trade curbs domestic giants by exposing them to foreign competition. BT, France Telecom and Deutsche Telekom now trample on each other’s turf, as do new companies, big and small, like Vodafone and Virgin. Closed domestic markets, where national champions can cosy up to government, are much more likely to be monopolised than global ones.”
Tags: philippe legrain