What is the effect on governments and political parties by the current form of globalization?
Given that many criticisms of the current form of globalization revolve around the fact that it is overly corporate-led, any political party that comes into power in a country faces similar pressures from the large multinational companies that have substantial impacts and influence on economies due to their size. If policies such as environmental or safety regulations are proposed that prove costly to such companies, or simply affect their bottom line, the threat by them to close factories and set up elsewhere where is too much to ignore. Often then, many parties seen to converge to similar policies which are not always in the interest of their voters and people of that country. This affects wealthy and poorer countries. Structural adjustment and other policies open up countries in such a way that it is possible for the multinational companies to threaten to pull out so easily. Find Out More » – Related Section(s): Free Trade and Globalization / Structural Adjustment Policies • The eff
