Final answer:
Multinational leaders sometimes over-react to globalization by relocating to countries with cheaper labor, which leads to job loss, inequality, and political controversy in their home countries. Technological advancements drive these changes, but recent events like Brexit show a global pushback against such trends. This over-reaction often prioritizes immediate profits over long-term sustainability and social responsibility.
Step-by-step explanation:
Over-Reactions to Globalization by Leaders of Large Multinationals
Leaders of large multinationals sometimes over-react to their sense of urgency about globalization due to the perceived need to remain competitive in a rapidly integrating global economy. This can manifest as a rush to relocate factories to countries with cheaper labor and weaker environmental regulations, often resulting in the erosion of nation-state power, increased political controversy over job losses, and rising inequality. This international division of labor pits wealthier workers against a low-wage labor pool, potentially exacerbating xenophobia and forcing companies to Americanize products to appeal to domestic sentiments.
The overwhelming drive for profit can lead to a disconnection with local community interests, as corporate decisions focus on markets, labor, and raw materials. The economic benefits of technological advancements in business have led to cultural and societal changes, with implications for local communities globally. Notably, recent pushbacks such as Brexit and the election of political figures advocating for protectionist policies highlight the tension between globalization benefits and its impact on job security, political sovereignty, and economic equality.
The reaction to globalization in corporate practices sometimes overcompensates by prioritizing short-term profitability over sustainable, socially responsible growth. Corporations may underestimate the long-term consequences of their globalization strategies, such as potential political backlash, social unrest, and calls for increased national control over economic matters.