The process is perhaps best described by Brecher and Costello (1998): “As almost every factor of production moves effortlessly across borders, the very idea of an American economy is becoming meaningless, as are the notions of an American corporation, American capital, American products, and American technology. A similar transformation is affecting every other nation” (p18).
According to Went (2000), there are four aspects of globalization that changed the functioning and organization of the world. First, the world economy is one as global markets are replacing national markets. MNCs use these global markets as a natural strategy. Second, the influence of MNCs keep growing and global companies are organizing production and distribution globally, with major consequences for the structure of organizations and for employees. Third, power has shifted away from governments to supranational organizations like the World Bank, IMF, G7, WTO and OECD. Fourth, macroeconomic policies are being globalized, with the neoliberal paradigm becoming unchallenged and being applied globally.