In the era of globalization, the role of multinational corporations (MNCs) is increasing in importance while the influence of nation-states is in a corresponding decline. Jain contends that this trend will benefit the cause of worldwide economic prosperity, which MNCs alone are positioned to deliver. The increasing availability of global capital, coupled with advances in computing and communications technology, has accelerated the process of doing business anywhere and everywhere. At the same time, barriers to foreign entities wishing to conduct business in Russia, China, India, Brazil, and Indonesia are falling away.
As the process of globalization marches on, what can be done to ensure that material prosperity is the result? A Global Business Confederation, Jain argues, should be established to design rules that apply worldwide and that encourage MNCs to generate global economic prosperity in a manner responsive to cultural, social, and humanitarian concerns.
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SUBHASH C. JAIN is Professor of International Business and Director of the Center for International Business Education and Research (CIBER) and Director of the GE Global Learning Center at the University of Connecticut School of Business, Storrs.
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