Globalization has altered how businesses work. In short, any
business is in fact a national business if they ship around the globe. As
such, should we start thinking differently about businesses themselves?
Stateless Businesses: Our concept of American Businesses,
French Businesses, Chinese Businesses, comes from the age old concepts of
territorial boundaries. Basically, the business exists in a country and nowhere
else unless they open up a headquarters in another country. But now that is
unnecessary as the headquarters can exist in a singular country, a cruise ship,
or even a person's laptop and still do business all over the world. This can be
done thanks to the technology from the internet. As such, businesses do
not need countries to operate out of anymore. This could potentially lead
to businesses divesting themselves of national borders to escape taxation.
So a business can literally pick up and move to a tax haven if they so
choose with little effort. Even brick and mortar businesses can ditch the
brick and mortar and operate on a network of computers throughout the world
with employees seeing each other via video phones. Deals can be made
remotely and even discreetly without government knowledge. These
businesses also become almost impossible to tax as they exist as nothing more
than a series of individuals. All regulations that a normal business
might follow become useless as the business exists out of islands in the
Pacific, tax havens in Holland, or in the homes of individual people.
There may even be no employees to pay, and if there are people are
strictly paid for quality of work. Basically, these businesses are nearly
impossible to track, tax and regulate. In short, businesses become like
phantoms, existing as another entity that is above State control. And you
know what? It is a very good thing.
Conclusion: I wanted to give you my readers an
idea into the potential of what a globalized business in the future will look
like due to technological progression. There is no need for any physical
structure for the entire buying and selling structure is on the internet.
A single individual can present items on a cheap website, and when you
click to buy, you are charged a traditional rate, but the business owner has no
factory or warehouse, instead they have the actual factory in another business
that produces your item deliver it directly to you while you are simply charged
a little extra because you had to pay a middleman. Alternatively, a
factory can skip on using a middleman and ship to you directly without using
other websites. There is a large number of possibilities here as a single
business can exist almost anywhere in the cheapest taxed country in the world.
No more patronage by government needed, no more need to follow most
regulations. It becomes a near free market paradise. All that is
left is to see how each business, and each entrepreneur develops in this new
globalized market where taxes, and regulations on the workplace (excluding
safety if you have a factory) cease to be of use.
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