ture, and by delivering their culture on demand, they become responsible for cultural imperialism. This phenomenon has often beenreferred to as Americanization. In another article by the economist magazine (may 29 1997), it argues that the forces of globalization and new technology threaten to weaken the power ofGovernments, by making them tax their citizens. As the world becomes more integrated, and as capital and labor can move more freely from high-tax countries to low-tax ones, a nation’sability to increase tax rates is amplified, where it is being constrained elsewhere. At the same time, the expansion of business conducted over the Internet will make it harder to track andhence tax transactions. Firms and people are more mobile—and can exploit tax differences between countries. This is the heart of the problem that governments face.Multinational firms design their product in one country, manufacture in another, and sell in a third. This gives them plenty of scope to reduce tax bills and hence governmentslose power in controlling its tax system. This will have a serious effect on the country’s budget, which might force the government to find other ways to raise money. Dr. Fukuyama's book, “The Social Virtues and the Creation of Prosperity,” had an interesting view about culture and globalization. He argues that societies largelymaintain their individual characteristic despite economic pressures. Fukuyama asserts that these cultural values in many respects define how business is conducted within anation. He adds that culture is going to be homogenized, but at a much slower process. Although many people think that because the advanced communications technology isable to project global television culture worldwide, this will lead to homogenization on a deeper cultural level, it's done just the opposite. Communications will allowcountries to view each other more clearly and this will lead ...
