The Rash To Become A Global Player Global Take-overs - PART 4 Isokratia Global
The race has already begun. The run to dominate the Global economy is well under way. Already British companies, along with companies from the other three major economies, USA, Germany and France, are taking over the world. According to the Paris-based organisation for economic co-operation and development, the UK companies in 1999 have let the race to globalisation by acquiring foreign rivals. In 1999 British firms spend 164 billion sterling on foreign acquisitions. Overtaking even the USA who has spent 97 billion pounds.
The Germans came third and the French fourth. British companies accounted for one third of the total amount of money spent worldwide on foreign takeovers. Fred Erwin, President of the American Chambers of Commerce in Germany, said “this is just the beginning of a boom in European acquisitions”. A trend, which began by the huge boom of the United States in the 1980’s, will continue in Europe. I could not agree any more.
Across Asia and the rest of the world, the merger globalisation, is watched by executives and government officials very carefully. They have to fight back somehow. They are looking at the Japanese example, with great interest. In Japan the financial organisations merged into a gigantic conglomerate, to lay claim to their global share.
In Malaysia, the authorities have announced controversial plans, to compel the nation’s 58 major financial institutions, to combine into six big players. A number of large corporations merging, or taking over other large corporations across the Atlantic, has been triggered in all industries. Telecommunications, food stores, car industry. The rest of the world is responding to the threat of being forever swallowed by the G8. The rest of the world, wants their share of Global economic activity.
Where will these mergers and take-overs lead? Are they tomorrow’s global economy, founding members? Or are they the ailments of tomorrows global economy? Can they be sustained, within the present structure of world trade? What kind of intervention, are we going to witness, in both the short and long term economic arena? What forms of intervention? Will they be economic, political, and politico-economic? Could they lead, or result in military intervention? All hot and viable questions and concerns.
In the absence of a single global currency and effective global governing bodies, it is not stretching it too far, to see a case ahead, where a super power resorts to military power, irrespective under what etiquette. Will the main etiquette, be in defence of their global companies, under the pretence of the so-called national interest. Could it be under the label of the global interest. Under the present un-Isokratic systems, it is well known, how such big conglomerates influence government opinions and actions.