Essay by klogUniversity, Bachelor's April 2003

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Society based on national capitalism is becoming weaker and weaker as opposed to the growing power of global capitalism. Globalization according to Riccardo Petrella is a new trend that leads the world towards an unequal division of economic activity and development. If current forms of globalization remain unchanged the already existing problems will become magnified even further. The importance of the national market is being downsized by the growing globalization of the economy. National economy is no longer the key factor in areas of scientific development or technological innovation. "The enterprise privatizes for its own purposes the role of the state." 1 Corporations manipulate governments and in absence of global governance increasingly gain the control of the world economy. Triadization is a more correct word describing the present state of global growth. De-linking the less economically developed countries is a clear problem. The consequence of trade only between the three most developed regions of the world is global inequality.

If the current trend continues this may become an enormous problem in the future.

National markets are no longer the main factor in the development of a nations economy. Many companies' productions depend on products or materials acquired in other countries. Production of wealth in countries like Germany France, Japan, Germany, Finland or Costa Rica does not depend on the performance of local firms but on the corporations that operate globally. 2 Capitalism is no longer limited by the national boundaries. Due to the increase in technology and transportation world trade and offshore production is no longer a difficult and costly operation. Manufacturing of goods in the less developed countries allows corporations to cut their production costs considerably. This brings those international corporations extra revenue, which makes them more powerful and in turn strengthens the 'local' or national economy of the...