Global Assembly Line

Products are being assembled with parts brought from all parts of the world. This is the global assembly line; a process of outsourcing, contracting and subcontracting that has major implications for the organization of work and the employees’ position within the MNCs. To increase profit, MNCs can close or move its operations to a cheaper location, or threaten to gain concessions. Globalization has given the MNCs power to put pressure on workers and producers by weakening their bargaining power as a result of increased global competition (Carr & Chen, 2001). Finally, the number of corporations operating transnationally amounted to 53,000 in 1997 with 448,000 foreign affiliates. The MNCs share of world economy keeps growing and this gives them considerable power over weaker countries and economies.

The results of this rapid globalization are diverse. Of particular relevance in the rise of the superbrand, dictatorship of the financial markets, a race to the bottom, privatization, increasing migration, growing social inequality, and commodification appear to be particularly important factors (Went, 2000).

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